At the equilibrium price, the quantity that buyers are willing to purchase is ______ to the quantity that sellers are willing to supply.
a. exactly equal
b. almost equal
c. more than
d. less than
a. exactly equal
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If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, in order to improve the country's economic welfare, the Gambinian government should
A) engage in free trade. B) protect the capital-intensive product. C) protect the land-intensive product. D) protect the labor-intensive product. E) discontinue all international trade.
In the long run, monopolistically competitive firms have:
a. excess capacity. b. positive profits. c. minimal average costs. d. homogeneous production.
Assuming there are no externalities, if a firm is producing at an output level where the benefits to consumers are less than the cost to the suppliers to produce it, then price
A. is less than marginal cost. B. is greater than marginal cost. C. is less than marginal revenue. D. equals marginal cost.
Monopolies may earn zero economic profit because of
a. zero marginal cost b. barriers to entry c. patents and copyright laws d. economies of scale e. government price regulation