If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses.
B) firms are no longer maximizing profits.
C) some firms must immediately exit.
D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
A
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If the United States lifts the embargo on Cuban products, what will happen in the U.S. market for Cuban cigars?
A) The supply curve will shift to the right. B) The supply curve will shift to the left. C) The demand curve will shift to the left. D) The demand curve will shift to the right.
Suppose the Federal Reserve desires to raise the level of planned investment in the economy
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