If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase
B) earning economic profits indefinitely
C) new firms to enter the market
D) the market supply to decrease
C) new firms to enter the market
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Guiding the market through strategic coordination of business investments to increase export market shares is known as
(a) development planning. (b) industrial policy. (c) shifting terms of trade. (d) all of the above. (e) none of the above.
A trade surplus occurs when:
A. exports are less than imports. B. exports exceed imports. C. government spending exceeds government revenue. D. government revenue exceeds government spending.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
The difference between the actual price that a producer receives and the minimum acceptable price a producer is willing to accept is:
A. The consumer surplus B. The producer surplus C. Allocative efficiency D. Productive efficiency