Markets with hit-and-run entry and exit experience
A) barriers to entry.
B) firms entering whenever they can make a profit and exiting when they cannot make a profit.
C) steady long-run economic profit.
D) a very steady number of firms.
B
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The four categories of final users of GDP are:
A. households, firms, governments, and the foreign sector. B. businesses, corporations, firms, and farms. C. businesses, firms, governments, and the foreign sector. D. households, the Federal Reserve, governments, and the foreign sector.
Juan and Lauren have decided to stop studying economics and get a bite to eat. Juan wants to go for a pizza and Lauren wants a hot dog They decide to go for pizza. What can we conclude from this?
A. Utility analysis does not work here since Lauren did not eat a hot dog. B. Juan always gets more utility from pizza than Lauren does. C. Lauren will get negative utility from the pizza. D. Lauren gets less utility from pizza than she could from a hot dog.
The formula of the equation of exchange is
A) MS = VPY. B) MSV = PY. C) MS/P = Y. D) MS = Y.
Which of the following statements is correct?
A) The price level does not affect the level of real GDP demanded. B) The lower the price level, the more the aggregate demand curve shifts rightward. C) The lower the price level, the greater the quantity of real GDP demanded. D) The higher the price level, the more the aggregate demand curve shifts rightward. E) The lower the price level, the more the aggregate demand curve shifts leftward.