The key difference between the real exchange rate and the market exchange rate is that the market exchange rate controls for the level of prices

Today, firms in a perfectly competitive market are making an economic profit. In the long run, firms will ________ the market until all firms in the market are ________

A) exit; covering only their total fixed costs B) enter; making zero economic profit C) exit; producing at the minimum point on their long-run average cost curve D) enter; making zero normal profit

You own a business that answers telephone calls for physicians after their offices close. You have an incentive to substitute capital for labor if the

A) marginal product of labor increases. B) price of labor increases. C) price of capital increases. D) price of labor decreases.