Profits
A. are a cost of doing business because they are payments to others.
B. are not a cost of doing business because they are owed to resource owners.
C. are not a cost of doing business because they are often zero or negative.
D. are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.
Answer: D
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A direct restriction on the quantity of an import is called a(n):
A) quota. B) tariff. C) import subsidy. D) import restriction.
In a competitive market, if buyers did not know all the prices charged by the many firms
A) all firms still face horizontal demand curves. B) firms sell a differentiated product. C) demand curves can be downward sloping for some or all firms. D) the number of firms will most likely decrease.