In a perfectly competitive market, the first firm to adopt a new cost-saving technological advance will
a. buy more resources
b. suffer an economic loss
c. earn an economic profit until other competitors adopt the technology
d. export to foreign markets
e. supply low income neighborhoods
C
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Refer to Figure 3-1. An increase in the price of a complement would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
The interest rate is determined purely by market forces, and not by government involvement
a. True b. False Indicate whether the statement is true or false
In economics, the term that refers to the time, effort, and other resources needed to search out, negotiate, and consummate an exchange is
a. transaction costs. b. specialization costs. c. pecuniary costs. d. comparative costs.
Which of the following would shift the investment demand curve leftward?
A. an increase in business taxes B. a decrease in business taxes C. a tax credit for new investment D. Firms are operating their plants at full capacity.