Given the graph for a particular industry shown above we know that
A. new entrants will not be attracted to this industry.
B. this industry can survive in both the short and long run.
C. the industry is making a profit.
D. this industry will disappear in the short run.
A. new entrants will not be attracted to this industry.
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Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."
A) This is a normative statement. B) The federal government does not face scarcity. C) This topic would be studied in microeconomics. D) Social interest must always be more important than self-interest. E) Ceteris paribus does not apply to the government.
Even if an insurance company holds a substantial reserve to pay claims, the algebra of probability shows that its funds are likely to be exhausted in payouts
Indicate whether the statement is true or false
The preferred asset ratio "U/D" affects the M2 money multiplier because:
a. Actually, it is does not affect the M2 money multiplier because customary reserves are not a part of M2. b. Funds kept in customary reserves reduce financial institution's ability to lend. c. U/D affects the required reserves financial institutions must hold and thereby affects the banking system's lending ability. d. U/D determines the funds flowing into near-money accounts. e. None of the above.
Your annual review is given to you at your place of employment, and you get a raise of 3 percent for the next year. On the subway home though, you read an article stating the price of homes in the area you are looking to buy will increase by 6 percent during the coming year. You determine from the article that if you buy in your favorite neighborhood
A. your purchasing power declines. B. quantity demanded will increase. C. your real income actually increases. D. consumer optimum is reached.