Suppose that in a perfectly competitive market, firms are making economic profits. In the long run, we can expect to see:
a. some firms leave.
b. the market price rise.
c. market supply shift to the left.
d. economic profits become zero.
e. production levels remaining the same as in the short-run.
d
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Making a decision "on the margin" involves comparing:
A. additional benefits against additional costs. B. total benefits against total costs, which include benefits and costs from past decisions. C. sunk costs against opportunity costs. D. the most benefit you could expect to get without considering costs.
In order for barter trades to occur, there must be a
a. singularity of interests. b. bargaining intermediary. c. double coincidence of wants. d. sufficient supply of cash.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions become more positive (or less negative). b. The quantity of real loanable funds per time period falls and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
According to economic historians, streetcars in southern cities in the early 1900s were racially segregated because the owners of the firms believed that segregation raised the firms' profits
a. True b. False Indicate whether the statement is true or false