Entry of new firms will occur in a monopolistically competitive industry until
a. marginal cost equals zero
b. marginal revenue equals zero
c. marginal revenue equals marginal cost
d. economic profit equals zero
e. economic profit is negative
D
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If the cross elasticity of demand for good x with respect to the price of good y is positive, then goods x and y are
A) normal goods. B) inferior goods. C) complements. D) substitutes.
The rationale behind patents is that if inventors and artists cannot secure the returns from successful projects, fewer new inventions and works of art will be produced
Indicate whether the statement is true or false
The 1997-1998 Asian crisis began in
a. China. b. Japan. c. Taiwan. d. South Korea. e. Thailand.
Exhibit 2-19 Production possibilities curves
In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and would like to get to point B in Year Y. Construct a plan this country to activate in Year X to achieve this growth.
A. Eliminate unemployment, improve production technology, and acquire additional resources. B. Produce more consumption goods, eliminate unemployment, and reduce inefficiency. C. Reduce inefficiency, shift energy sources, and hold technology fixed. D. It is impossible for this country to achieve point B in Year Y.