In the long run, firms will enter a perfectly competitive market if the existing firms are making:
A. a profit.
B. negative profits.
C. zero profits.
D. Any of these could be true.
A. a profit.
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A profit-maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to
A) -3. B) -1. C) -1/3. D) None of the above—the price elasticity does not matter.
Which of the following is most accurate?
a. The US has always had a national bank since the early 1800s. b. The US is currently on the gold standard. c. The US used both gold and silver to back its currency during the entire 19th century. d. The US experienced low inflation during the 1970s because it printed very little money. e. The US Federal Reserve is relatively independent compared to similar institutions in most other industrialized nations.
Why are demand curves downward sloping?
What will be an ideal response?
A price-taker faces a demand curve that is:
A. vertical at the market price. B. upward sloping. C. horizontal at the market price. D. downward sloping.