If price is above the average variable cost but below the average total cost of a representative firm in a competitive industry
a. There will be new industries blooming over time
b. There will be an interest in the industry over time
c. There will be an exit from the industry over time
d. All of the above
e. None of the above
c. There will be an exit from the industry over time
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What were the major reasons for the lack of sustained growth before modern times?
What will be an ideal response?
For most welfare recipients, the negative income tax plan would increase incentives to work.
Answer the following statement true (T) or false (F)
For which of the following types of environmental pollution can we expect that the level of environmental harm would increase as per capita income increases?
A. Arsenic in water B. Lead pollution in water C. Carbon monoxide D. Carbon dioxide emissions
Figure 11.3Figure 11.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3, in the long run we would expect:
A. the firm to earn a zero economic profit. B. the firm to charge a price equal to its marginal cost. C. the firm to increase its output level. D. the firm to produce at the lowest average cost.