Explain why technological progress will, at best, only temporarily allow a perfectly competitive firm to earn an economic profit.
What will be an ideal response?
Technological progress shifts a firm's MC curve and ATC curve downward, allowing an economic profit in the short run. In the long run, however, this economic profit will attract entry into the industry, causing price to fall until zero profit is achieved.
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A ________ is an exclusive right granted by the government to an author's intellectual property
A) patent B) blueprint C) copyright D) trademark
The table above gives the demand schedule for snow peas. The price elasticity of demand between $6.00 and $7.00 per bushel is
A) 1.0. B) 2.0. C) 2.6. D) 5.0.
An increase in the price level in Japan relative to the price level in the United States will shift the demand curve for dollars leftward and the dollar depreciates or becomes weaker
a. True b. False Indicate whether the statement is true or false
Consider the accompanying payoff matrix.
Is this game a prisoner's dilemma?
A. It's a prisoner's dilemma for player B, but not for player A. B. It's a prisoner's dilemma for player A, but not for player B. C. No. D. Yes.