Inflation makes money an imperfect store of value.
Answer the following statement true (T) or false (F)
True
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The primary reason why monopolistically competitive firms cannot earn an economic profit in the long run is because
A) there are barriers to entry. B) there is freedom of entry. C) the antitrust laws prevent profit from increasing. D) recessions occur. E) they collude to earn a normal profit.
Banks use "credit-risk analysis" to
A) determine the appropriate interest rate to charge borrowers. B) determine whether to invest in the stock of a corporation. C) determine the appropriate interest rate to pay depositors. D) determine the likelihood of an audit by bank regulators.
Consider a monopolist with linear (inverse) demand p = a - bQ and constant average and marginal cost, c. Derive the monopolist's profit and the deadweight loss generated
Show that in such cases of linear demand and constant average and marginal cost, the deadweight loss is 50% of the monopolist's profits.
The cross price elasticity for Papa John's pizza for a change in the price of Pizza Hut pizza is likely to be
A. negative but less negative than -1. B. negative and more negative than -1. C. zero. D. positive.