Economic profits in the rent-a-wreck industry are $400,000 per firm. Assuming that the industry is perfectly competitive,
A. new firms will enter and the supply of the car rentals will increase.
B. new firms will enter but there will be no effect on the supply of car rentals.
C. firms will leave the industry and supply will fall.
D. the industry is in equilibrium.
A. new firms will enter and the supply of the car rentals will increase.
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In national income accounting, a "final good" is
A) a finished product. B) something purchased with the goal of further resale. C) something purchased by an ultimate user in the household, business, or government sector. D) something that is impossible to determine.
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. Now suppose that demand increases
The increase in demand results in the quantity supplied A) increasing. B) staying the same. C) decreasing. D) increasing, staying the same, or decreasing depending on how much demand increases.
An increase in the money supply will raise equilibrium GDP if the
A) IS curve is not vertical. B) IS curve is negatively sloped. C) position of the IS curve depends on the level of real money balances. D) position of the LM curve depends on the level of real money balances.
What is shown by the indifference map for two goods? Which indifference curve would a consumer want to be on?
Please provide the best answer for the statement.