If entry is limited due to a limited input, firms in that market earn long run economic profit
Indicate whether the statement is true or false
False. The price of the limited input will be bid up until zero economic profits result in the market that uses the input.
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In connection with laborers, the law of conspiracy meant that
(a) employers had every right to organize or conspire to keep wages low and prices high. (b) workers had every right to organize or conspire to keep wages high and working hours short. (c) workers could organize unions to promote their own interests as long as they did it publicly and in fair dealings with employers and did not "conspire" to do it in secret meetings not open to the public. (d) worker organizations aimed at promoting the economic interests of the members were illegal.
Is inflation a macroeconomic or a microeconomic question? Why?
What will be an ideal response?
Collusion always involves firms engaging in a
A) vertical merger. B) horizontal merger. C) cooperative game. D) noncooperative game.
An increase in supply will cause a shortage at the original market price
a. True b. False Indicate whether the statement is true or false