Which characteristic of a monopolistically competitive firm causes it to have zero profits in the long run?
A. There are no barriers to entry.
B. The firm has a slight control of its price.
C. The firm sells a differentiated product.
D. All of these cause the monopolistically competitive firm to have zero profits in the long run.
Answer: A
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Technology can enable producers to economize on:
a. labor b. capital c. land d. any of the above.
A country has national saving of $80 billion, government expenditures of $40 billion, domestic investment of $50 billion, and net capital outflow of $30 billion. What is its supply of loanable funds?
a. $30 billion b. $40 billion c. $50 billion d. $80 billion
Which of the following summarizes the feedback loop discussed in the video?
A. As the money supply increased, real GDP decreased, which caused the money supply to increase even faster, and so on. B. As the money supply increased, prices rose, which caused the money supply to increase even faster, and so on. C. As prices rose faster, the government had to print even more money, which caused prices to rise even faster, and so on. D. As prices rose faster, real GDP increased, which caused prices to rise even faster, and so on.
If perfectly competitive firms have to account for external costs of production, then at the equilibrium level of output
A. P < MSC B. P = MC C. MC = MSC D. Both A and C are correct.