When entry of new firms decreases input prices in an industry, it is a(n)
a. increasing cost industry.
b. decreasing cost industry.
c. constant cost industry.
d. input elastic industry.
B
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Given a real interest rate, a decrease in taxes on saving ________ the after-tax real interest rate and ________ the incentive to save
A) increases; increases B) increases; reduces C) decreases; increases D) decreases; reduces
According to the text, the growth of service sector employment in the US has contributed to
a. higher unemployment rates in the postwar period. b. a slowdown in the growth of real wages during the postwar period. c. reduced economic stability in the postwar period. d. an increase in the power and membership of unions. e. All of the above.
A creditor of a corporation holds
a. bonds sold by the corporation. If the corporation experiences financial difficulties stock holders are paid before bond holders. b. bonds sold by the corporation. If the corporation experiences financial difficulties bond holders are paid before stock holders. c. stocks sold by the corporation. If the corporation experiences financial difficulties stock holders are paid before bond holders. d. stocks sold by the corporation. If the corporation experiences financial difficulties bond holders are paid before stock holders.
Microeconomics deals with the analysis of all the following questions except how:
A. the wages of carpenters are determined. B. high did unemployment rise during the Great Depression. C. does Ford decide how to price its cars. D. does a college student decide how to spend her income.