One reason why firms in monopolistically competitive markets earn zero profit in the long run is because
a. product differentiation disappears
b. barriers to entry become prohibitive
c. the price elasticity of demand for each firm falls to zero
d. so many firms enter the market that each firm's demand curve eventually becomes tangent to the firm's ATC curve
e. each firm's ATC curve shifts upward to eventually become tangent to its demand curve
D
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________ unemployment occurs due to a mismatch between the jobs that are available and the skills of workers seeking jobs
A) Frictional B) Cyclical C) Voluntary D) Structural
The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each
Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. If the insurance company's only costs are the claims it must pay, has the insurance company earned an economic profit? A) Yes, they earned an economic profit of $90,000. B) No, they broke even. C) No, they sustained an economic loss of $90,000. D) Yes, they earned an economic profit of $1,000,000.
When the price level falls, the ________ curve for nominal money ________, and interest rates ________, everything else held constant
A) demand; decreases; fall B) demand; increases; rise C) supply; increases; rise D) supply; decreases; fall
If two countries participate in free trade:
A) every individual in each country will benefit. B) both countries as a whole may gain from the trade. C) one country will benefit, but the other country will experience reduced welfare.. D) neither country will benefit.