The entry of new firms into a market stops when:
a. the accounting profit of existing firms falls to zero.
b. the general price level in the economy rises.
c. the rate of interest in the economy declines.
d. the economic profit of existing firms falls to zero.
e. the corporate taxes are relaxed.
d
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A firm's total fixed cost (TFC) is a cost
A) it is certain ("fixed") that the firm must pay. B) that does not change as output changes. C) that is dependent on marginal cost. D) that is paid in only the long run.
From 1860 to 1910,
(a) The total population grew faster than the workforce. (b) National income grew faster than did total population. (c) The workday increased. (d) Foreign investment in the U.S. dropped continuously.
In a Cournot oligopoly, the ________ firms in the market, the ________ the equilibrium quantity and the ________ the equilibrium price.
A) less; larger; lower B) less; smaller; lower C) more; larger; lower D) more; smaller; higher
An economist might say that people choose not to get a college degree because they may have to borrow money to go to college, and the interest they have to pay on that loan in the future will affect their decisions today. This is an example of which kind of statement?
a. positive statement b. normative statement c. trade-off statement d. allocative statement