When do new firms tend to enter a competitive industry?
a. When the large firms in the industry are earning zero profit.
b. When the smaller firms are leaving the industry.
c. When the new entrants can earn positive profits.
d. When there is an absence of fixed costs in the long run.
c. When the new entrants can earn positive profits.
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Refer to Table 2-11. If the two countries specialize and trade, who should export wheat?
A) South Korea B) There is no basis for trade between the two countries. C) China D) They should both be exporting wheat.
The institutional production possibilities frontier illustrates the different combinations of goods that society can obtain given
A) the constraints of finite resources and the current state of technology. B) the price level. C) its institutional constraints. D) the natural rate of unemployment. E) the constraints of finite resources and the current state of technology and institutional constraints.