Suppose a monopolistically competitive industry evolved into a perfectly competitive industry. Which of the following statements is correct?
A) The industry would produce more output and charge a lower price after the change.
B) The industry would produce at decreasing returns to scale.
C) Elasticity of demand for the firm's product would remain the same after this change occurred.
D) This industry would produce the same level of output at lower prices in the long run than before the change.
A
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The sale of western lands failed in its purpose because of corruption
Indicate whether the statement is true or false
Which of the following is true of transfer programs? a. They involve redistributing income from lower-income individuals to higher-income individuals. b. They place a high implicit tax on work
c. They increase the opportunity cost of leisure. d. They indirectly help in decreasing the unemployment rate in an economy. e. They result in an increased productivity of labor and a rise in the total output of an economy.
The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called:
a. producer surplus. b. consumer surplus. c. total surplus. d. demand surplus.
When the housing bubble occurred it can be attributed to all of the following except:
A. homeowners lack of confidence in the institutions who made the loan to them. B. it became easier to leverage more of a home's value, putting buyers more into debt. C. people expected housing prices to continue to rise. D. the seller of the mortgage had lost incentive to properly assess the risk.