When firms in an industry produce differentiated products,
a. long-run economic profit will always be zero
b. short-run economic profit will always be positive
c. the demand curves facing firms will always be perfectly elastic
d. the demand curves facing firms will always be downward-sloping
e. new firms will always have an incentive to enter the industry in the long run
D
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The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 × P) and Healthy Bars has a constant average cost of $3 per snack bar. If Healthy Bars wants to package their bars to create an all-or-nothing offer and puts the profit-maximizing number of bars into each package, what is the profit-maximizing price to charge for the package?
A) $8 B) $12 C) $20 D) $16
All of the following can raise wages of union members EXCEPT
A) increasing the demand for non-union made goods. B) increasing the demand for union-made goods. C) limiting union membership over time. D) increasing the productivity of union workers.
Direct foreign investment in the LDCs
a. explains whatever economic growth the LDCs had in the last quarter of the 20th century b. pushes the production possibilities curve inward toward the origin because resources are being diverted from the LDCs' own production activities c. leads to substantial LDC debt to rich nations d. cannot help the LDCs and can actually hinder their development because LDCs become reliant on it e. can help the LDCs but cannot be a substitute for their own development efforts
A prolonged period during which stock prices continue to rise is known as a
a. bear market b. bull market c. crashd. resurgence e. none of these