The entry of new firms into a perfectly competitive market will cause a(n) __________.
A) increase in the profitability of existing firms
B) decrease in the profitability of existing firms
C) leftward shift of the demand curve of the good being produced by the firms
D) rightward shift of the demand curve of the good being produced by the firms
Answer: B) decrease in the profitability of existing firms
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The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S. economy to the low levels of unemployment experienced during the 1920s
Indicate whether the statement is true or false
Supply-side market failures occur when:
A. the demand and supply curves don't reflect consumers' full willingness to pay for a good or service. B. the demand and supply curves don't reflect the full cost of producing a good or service. C. government regulates production of a good or service. D. a good or service is not supplied because no one wants it.
Gross domestic product is generally ________ national income
A) greater than B) less than C) equal to D) unrelated to
Refer to Common Property II. Suppose the common property becomes privately owned. If the owner behaves competitively, what entrance fee would he charge for the right to use the property?
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. PC.
b. PC - P1.
c. P2 - PC.
d. P2 - P1.