If firms are making profits under perfect competition, in the long run the industry supply will ______ and price will ______.
A. rise; rise
B. fall; fall
C. fall; rise
D. rise; fall
D. rise; fall
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In an hour Jane can solder 50 connections or inspect 20 parts while Jim can solder 25 connections or inspect 20 parts in an hour
A) Jane has a comparative advantage over Jim in both soldering and inspecting. B) Jane has a comparative advantage over Jim in soldering while Jim has a comparative advantage in inspecting. C) Jim has a comparative advantage over Jane in soldering while Jane has a comparative advantage in inspecting. D) Jim had a comparative advantage over Jane in both soldering and inspecting.
Compare the MPSs in Canada and the U.S. If it is 0.50 in Canada and 0.20 in the U.S., then
a. the income multiplier is smaller in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a larger change in national income in theU.S. than it does in Canada b. the income multiplier is larger in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a smaller change in national income inthe U.S. than it does in Canada c. the income multiplier is larger in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a larger change in national income in theU.S. than it does in Canada d. the income multiplier is smaller in the U.S. and the same change in aggregate expenditure in Canada and the U.S. creates a smaller change in national income inthe U.S. than it does in Canada e. the income multiplier is larger in the U.S. but the same change in aggregate expenditure in Canada and the U.S. creates the same change in national income inthe U.S. as it does in Canada
Dairy farmers hold an annual Capitol Hill ice cream social that provides free ice cream for congressional staffers during which time representatives from the industry discuss issues with, and provide information to, congressional staff. This is an example of
a. logrolling. b. rent seeking. c. pork-barrel legislation. d. the shortsightedness effect.
In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market. Use both diagrams to answer the following question: In Figure 23.3, at a price of p1 in the long run
A. P = ATC. B. Firms will enter the market. C. Economic profits equal zero. D. Firms will exit the market.