Entry in a perfectly competitive market
A) shifts the market supply curve rightward.
B) decreases the market price.
C) shifts the market supply curve leftward.
D) Both answers A and B are correct.
D
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If the Fed was to use all of its three most common tools to increase the money supply, it would:
a. buy bonds, reduce the discount rate, and reduce reserve requirements. b. sell bonds, reduce the discount rate, and reduce reserve requirements. c. sell bonds, reduce the discount rate, and increase reserve requirements. d. sell bonds, increase the discount rate, and increase reserve requirements.
Some argue that a nation should not depend too heavily on other countries for supplies of certain key products, special materials, or technologies that might have ______________ applications.
a. general b. scientific c. national security d. international
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The workers in Country B will benefit from trade if they:
A. specialize in bananas because they have an absolute advantage in banana production. B. specialize in tomatoes because their opportunity cost of tomatoes is higher than Country A's. C. specialize in tomatoes because their opportunity cost of tomatoes is lower than Country A's. D. specialize in bananas because they have a comparative advantage in banana production.
The reserve-deposit ratio equals:
A. bank deposits divided by bank reserves. B. 10 percent of bank reserves. C. bank reserves divided by bank deposits. D. 10 percent of bank deposits.