The motivating force behind an increase in supply in a long-run adjustment to equilibrium is
a. lower prices.
b. economic profits that are present in the short run.
c. higher profit expectations among owners of firms in the industry, triggered by increased prices.
d. normal profits witnessed by individuals outside the industry that trigger entry.
e. the decreases in average cost that can be obtained through economies of scale.
B
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The exchange-rate arrangement that emerged from the Bretton Woods conference is often referred to as the:
a. dollar exchange standard. b. euro exchange standard. c. gold exchange standard. d. silver exchange standard. e. flexible exchange rate standard.
An increase in price increases consumer surplus
a. True b. False Indicate whether the statement is true or false
Which of the following goods will have the most elastic demand at any time?
A. Cigarettes B. Electricity C. Gasoline D. Water E. Jewelry
Recall the Application about the salaries paid in Major League Baseball to answer the following question(s). Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.Recall the Application. On average, free agents in Major League Baseball tend to be paid a salary ________ their marginal revenue product.
A. significantly higher than B. significantly lower than C. close to D. unrelated to