Which of the following indicates the major difference between monopolists and competitive price searchers?
a. Monopolists will always be able to make economic profit; competitive price searchers will not.
b. Barriers to entry are high under monopoly but low in competitive price-searcher markets.
c. Monopolists will face a downward-sloping demand curve; competitive price searchers will not.
d. Unregulated monopolists will charge prices that exceed marginal cost; competitive price searchers will not.
B
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The long run is distinguished from the short run because only in the long run
A) output prices can vary. B) factor of production prices can vary. C) the quantities of all factors of production can be varied. D) the firm no longer maximizes its profit.
Real wages usually lag behind the increases in labor productivity
a. True b. False Indicate whether the statement is true or false
A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) does(do) these transactions raise investment?
a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second
A closed economy is a national economy that
A. has not established diplomatic relations with other national economies. B. has a stock market that is not open to traders from outside the country. C. has extensive trading and financial relationships with other national economies. D. doesn't interact economically with the rest of the world.