Entry of new firms in a decreasing-cost industry leads to an upward shift of the LRAC curve.
Answer the following statement true (T) or false (F)
False
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A price floor is
a. a legal minimum on the price at which a good can be sold. b. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor. c. a source of inefficiency in a market. d. All of the above are correct.
Consider the monopoly in the figure below with price regulated at $2 per unit. Deadweight loss resulting from the unregulated monopoly price is ________ than the deadweight loss resulting from the regulated price. 
A. less B. greater C. no different D. There is insufficient information to determine the difference in the deadweight loss between the regulated and unregulated prices.
If a firm suffers an economic loss, its:
A. price is less than its marginal cost. B. price is less than its marginal revenue. C. price is less than its average total cost. D. None of these
During 1971 - 1998, the new ________ and greatly expanded EITC created a motivation for the low-earning households to file returns when they were not legally required to do so.
A. Working Tax Credit B. Child Tax Credit C. Retirement Savings Credit D. Earned Income Credit