If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning negative economic profits, the firm should anticipate ________.
A) the market equilibrium price to decrease
B) the market supply to increase
C) new firms to enter the market
D) the market equilibrium price to increase
D) the market equilibrium price to increase
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The current yield is equal to
A) the coupon divided by the market price of the bond. B) the yield to maturity, if the bond is a coupon bond. C) the coupon divided by the par value of the bond. D) the market price of the bond divided by its par value.
Which of the following is concerned with the distribution part of resource allocation?
A. An economy decides to produce equal quantities wheat, rice, and clothes. B. An economy decides to use 25 percent of the available capital for producing clothes. C. An economy decides to ration 40 percent of its output to low income groups. D. An economy decides to use more labor for producing wheat and rice.
In the midst of the Great Depression in 1932, Congress and the Hoover administration increased tax rates substantially. According to the Keynesian view, this tax increase was
a. inappropriate because it would depress economic activity and lead to further increases in unemployment. b. appropriate because it would lead to a significant increase in the money supply and, thereby, increase employment. c. inappropriate because it would decrease the money supply and, thereby, prolong the Depression. d. appropriate because it would stimulate economic activity and help end the Depression.
According to the World View titled "Income Share of the Rich," in which of the following would the top tenth of the population be most likely to receive the highest percentage of the country's income?
A. Germany. B. Japan. C. The United States. D. Haiti.