The implicit rental rate for capital includes the
A) total value of a piece of capital equipment.
B) interest income forgone by purchasing the piece of capital equipment.
C) firm's normal profit.
D) amount paid for the use of a piece of capital equipment owned by someone else.
B
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If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
A) Some firms will leave the market. B) Firms will join together to keep others from entering. C) New firms will enter the market, thereby eliminating the economic profit. D) Firms will continue to earn economic profit.
Which of the following is most likely to lead to an increase in the rental price of apartments near your campus?
What will be an ideal response?
Marni’s country is rich in timber and has large sawmills. Carlos’s country has little land, but the government has invested heavily in education and technology. The principle of comparative advantage means that ______.
a. Marni’s country will grow faster than Carlos’s because it has more natural resources b. both countries will benefit if they each specialize production based on their resources and trade with each other c. Carlos’s country will have a higher economic growth rate than Marni’s d. these countries operate on different economic tracks and cannot be directly compared
The demand curve faced by a pure monopolist:
A. may be either more or less elastic than that faced by a single purely competitive firm.
B. is less elastic than that faced by a single purely competitive firm.
C. has the same elasticity as that faced by a single purely competitive firm.
D. is more elastic than that faced by a single purely competitive firm.