The entry of new firms into a perfectly competitive market in the long run is most likely the result of
a. temporarily above-normal profit, despite the presence of barriers to entry
b. continued above-normal profit, despite the presence of barriers to entry
c. temporarily above-normal profit, combined with the absence of barriers to entry
d. continued above-normal profit, combined with the absence of barriers to entry
e. either temporarily or continued above-normal profit, despite the presence of barriers to entry
D
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Which of the following statements regarding the basic economic problem of scarcity is correct?
a. The problem only exists in countries that are not highly industrialized. b. The problem is likely to disappear as production increases. c. The problem is sure to disappear as technology improves. d. The problem will exist as long as resources are available in limited amounts. e. The problem will disappear as a person's income falls.
The marginal benefit of acquiring additional information tends to
a. be zero if the marginal cost of information is zero b. increase and then decrease as additional information is obtained c. be smaller, the smaller the quantity of information the individual already has obtained d. increase as additional information is obtained e. decrease as additional information is obtained
A firm's opportunity cost of using resources provided by the firm's owners is called
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. entrepreneurial costs
The elasticity of demand for a normal good: a. is often higher in the short run than in the long run. b. is often lower in the short run than in the long run. c. is the same in the short run as in the long run
d. is zero in the short run and infinite in the long run.