Entry barriers can lead to long-run economic profits
a. True
b. False
Indicate whether the statement is true or false
True
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To maximize its profit, the firm in the figure above will produce ________ jeans and set a price ________ per pair of jeans
A) 150; between $50 and $25 B) 125; $25 C) 125; $50 D) 125; $75 E) None of the above answers are correct.
One difference between oligopoly firms and firms that are monopolistic competitors is that:
a. the average total cost curves of monopolistic competitors are generally u-shaped, but for oligopoly firms they are not. b. monopolistic competitors choose a level of output such that marginal revenue equals marginal cost, but oligopoly firms generally do not. c. monopolistic competitors face lower costs on average than do oligopoly firms. d. the interdependence among firms is highly significant in oligopoly markets, but not in monopolistically competitive markets.
An increase in government expenditure can crowd out consumption and investment expenditure.
Answer the following statement true (T) or false (F)
Financial intermediaries, such as commercial banks, help borrowers, particularly small borrowers, by:
A. providing information to evaluate financial investments. B. providing credit that might otherwise not be available. C. offering tax-preferred borrowing opportunities. D. eliminating the risk of borrowing.