You could conclude that
A. new firms will enter the industry.
B. existing firms will leave the industry.
C. the industry is in the long run.
D. it is unclear whether the industry is in the short run or the long run.
B. existing firms will leave the industry.
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A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.07 in the second year. What dollar wage must be paid in the second year?
A. $10.90 B. $10.70 C. $11.02 D. $10.30
If a consumer always buys goods rationally, then
A) the marginal utility per dollar spent on all goods will be equal. B) the marginal utility of the different goods consumed will be equal. C) the average utilities of the different goods consumed will be equal. D) the total utilities of the different goods consumed will be equal.
The Capital Asset Pricing Model determines the weighted average cost of capital
Indicate whether the statement is true or false
In the early twentieth century, streetcars in many southern cities were segregated by race. This racial segregation was the result of
a. laws that required such segregation. b. long-standing southern traditions about which the law was silent. c. streetcar firms trying to maximize profits. d. streetcar firms trying to minimize costs.