If one firm in a perfectly competitive industry is somehow able to produce at a lower cost than competing firms in the short run,
a. the competing firms will adopt similar production techniques in the long run.
b. the more efficient firm will earn higher profits than the competing firms in the long run.
c. the competing firms will earn higher profits than the more efficient firm in the short run.
d. the competing firms will go out of business in the long run.
a. the competing firms will adopt similar production techniques in the long run.
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Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 10% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will, in reality, most likely
A) increase the money supply by more than $1,000. B) increase the money supply by less than $1,000. C) increase the money supply by exactly $1,000. D) increase the money supply by exactly $10,000.
When a market is in surplus, there is pressure for the price to move upward
a. True b. False Indicate whether the statement is true or false
The law of supply:
A. shows that the relationship between producer revenue and quantity supplied is negative. B. is reflected in a downsloping supply curve. C. reflects the income and substitution effects of a price change. D. reflects the amounts that producers want to offer at each price in a series of prices.
Which of the following countries experienced the lowest level of output per capita in 2011?
A) United States B) France C) Japan D) United Kingdom