If firms in a monopolistically competitive industry are operating with positive economic profit, over time we would see
A) firms alter their advertising rates until they made at least normal profits.
B) some firms entering the industry, causing the market supply curve to shift to the right, lowering price.
C) some firms entering the industry, causing the demand curves of the existing firms to shift to the left.
D) some firms entering the industry, causing the demand curves of the existing firms to shift to the right.
C
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Most of the world's nations went off the gold standard in the year __________.
Fill in the blank(s) with the appropriate word(s).
Break-even analysis usually assumes all of the following except:
a. in the short run, there is no distinction between variable and fixed costs. b. revenue and cost curves are straight-lines throughout the analysis. c. there appears to be perfect competition since the price is considered to remain the same regardless of quantity. d. the straight-line cost curve implies that marginal cost is constant. e. both c and d
If a bushel of wheat costs $6.40 in the United States, costs 40 pesos in Mexico, and the nominal exchange rate is 10 pesos per dollar, then the real exchange rate is
a. 1.60 b. 1.25 c. .625 d. None of the above is correct.
A nation will neither export nor import a specific product when its:
A. domestic price equals the world price. B. export supply curve lies above its import demand curve. C. export supply curve is upsloping. D. import demand curve is downsloping.