A firm in long-run equilibrium under monopolistic competition will earn
A) zero economic profits because of free entry.
B) positive monopoly profits because each sells a differentiated product.
C) positive oligopoly profits because each firm sells a differentiated product.
D) negative economic profits because it has economies of scale.
E) positive economic profit if it engages in international trade.
A
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A perfectly competitive firm cannot practice price discrimination because
A) each consumer in a perfectly competitive market has the same willingness to pay. B) the firm can only charge the market price. C) a firm that breaks even in the long run cannot afford to engage in yield management. D) it does not advertise; this prevents the firm from marketing its product to different segments of the market.
Assuming a closed economy (i.e., NX = O) the data in Figure 2-1 suggest that for each year after 1980
A) private saving could have been either positive or negative. B) private saving was negative. C) private saving was positive. D) private saving equaled zero.
The Franklin National Bank Crisis had its greatest impact on the market for
A) commercial paper. B) commodity futures. C) negotiable certificates of deposit. D) Eurodollars.
Which of the following would be most likely to enhance the growth rate of an economy?
What will be an ideal response?