Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?
A) The firms' economic profits will be reduced.
B) New firms will enter.
C) Demand for the existing firms' output will become more inelastic.
D) The number of substitutes available in the industry will increase.
C
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Answer the following statement(s) true (T) or false (F)
1. All baskets of labor and capital capable of producing a given level of output are technologically efficient. 2. The Marginal Rate of Technical Substitution can be expressed as the ratio of the Marginal Productivities of Labor and Capital. 3. Output is held fixed along an isocost. 4. Moving down and to the right on an isoquant tells us how much quantity increases as inputs increase. 5. Like a family, a firm faces a fixed level of expenditure and therefore must choose one point along a particular isocost line.
A rightward shift in the aggregate supply curve with no change in the aggregate demand curve signals an economic expansion
a. True b. False Indicate whether the statement is true or false
Between 1977 and 2004, the inflation-adjusted prices for an array of goods traded between countries __________ while the inflation-adjusted prices for an array of goods not traded between countries _____________________
A) fell; increased. B) rose; increased as well. C) fell; decreased as well. D) rose; decreased.
The factory conditions of 19th century England that Karl Marx described may be found in his book, _______.
Fill in the blank(s) with the appropriate word(s).