Under perfect competition, existing firms leave the market in the long run if the price falls below total fixed cost

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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Suppose that Jesse Eisenberg had been offered a bigger and better part in another movie and that to hire him for The Social Network, the producer had to double Jesse's pay

What incentives would have changed? How might the changed incentives have changed the choices that people made?

Economics

In the context of the evaluation of the efficient markets hypothesis, pricing anomalies refer to

A) the existence of trading strategies that appear to have offered above-normal returns. B) the gap between actual and expected prices. C) the spread between the price at which a broker will purchase stock from an investor and the price at which the broker will sell stock to an investor. D) the difficulty in practice of computing stock prices on the basis of expectations of future dividends.

Economics