Refer to the information provided in Figure 12.2 below to answer the question(s) that follow.
Figure 12.2 Refer to Figure 12.2. The graph of this situation represents a partial equilibrium analysis because it
A. only shows two possible equilibrium points.
B. considers only the personal computer industry.
C. only shows a change in supply.
D. shows changes to both price and quantity.
Answer: B
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Free entry is said to exist in an industry when:
A) all firms entering an industry enjoy economies of scale. B) entry is unfettered by any special legal or technical barriers. C) equal amounts of inputs are available to all firms entering an industry. D) the government subsidizes costs for all new firms entering an industry.
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A) -0.8. B) 0.8. C) 1.25. D) -1.25.