Competition in markets results in:
A.) Economic losses in the long run.
B.) Guaranteed economic profit.
C.) The optimal mix of goods and services being produced.
D.) An undesirable allocation of resources.
C.) The optimal mix of goods and services being produced.
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If desired spending is less than output, then firms:
A) accumulate their inventories and cut production. B) deplete their inventories and cut production. C) deplete their inventories and increase production. D) accumulate their inventories and increase production.
Suppose a monopolist and a competitive price-taker firm have the same cost curves. The monopoly firm would
a. charge a lower price than the competitive price-taker firm. b. charge a higher price than the competitive price-taker firm. c. charge the same price as the competitive price-taker firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.
Which of the following is a test for serial correlation in the error terms?
A. Johansen test B. Dickey Fuller test C. Durbin Watson test D. White test
The individual demand curve shows the relationship between quantity demanded and the price of a product.
Answer the following statement true (T) or false (F)