If the ice cream industry is a competitive price-taker market and all ice cream producers are earning zero economic profit, what will be the impact of an increase in the demand for ice cream?
a. Firms will exit the ice cream industry in the long run since they are earning zero economic profit.
b. The firms will now be able to earn long-run economic profit assuming that barriers to entry remain low and new firms can enter the market.
c. A shortage of ice cream will develop.
d. The price of ice cream will rise initially, inducing the existing firms to expand output and new firms to enter the industry.
D
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Union members earn about the same wage level as nonunion members in the same industry.
Answer the following statement true (T) or false (F)
The classical growth theory asserts that
A) population growth leads to more growth in technology. B) population growth will lead to people earning only a subsistence level of income. C) economic growth will continue indefinitely. D) economic growth and population growth complement each other. E) population growth increases a nation's economic growth.
A game includes
A) a strategy. B) payoffs. C) rules. D) All of the above.
If a knowledge worker knows more than has manager it makes
A) sense to have a hierarchy organization. B) sense for the manager to closely monitor the employee. C) sense to promote the employee. D) no sense for the manager to monitor the employee.