When an innovation is created by one firm in a perfectly competitive market,
a. the market price will rise
b. less output will be produced by its competitors
c. the long-run equilibrium price remains the same but the economic profit of its competitors falls
d. some firms leave because the price will fall
e. other firms will imitate the innovator
E
Economics
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Capital is a factor of production. An example of capital as a factor of production is
A) machines. B) education. C) stocks. D) money. E) bonds.
Economics
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 25 percent, an initial deposit of $3,000 will lead to a total increase in deposits of
A) $750. B) $2,250. C) $12,000. D) $36,000.
Economics