The rate of new entry into an industry is independent of the industry's concentration
Indicate whether the statement is true or false
F A high rate of entry brings new small firms into an industry regularly and contributes to a low level of concentration; a low rate of entry allows successful firms to grow larger and may lead to high concentration.
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Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes
The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24. Which of the following is true? A) He is maximizing his utility. B) He is not maximizing his utility and should buy more Subway sandwiches. C) He is not maximizing his utility because he is not spending all of his income. D) He is not maximizing his utility and should buy more milkshakes.
The biggest disadvantage of a fixed exchange rate is the
A) increased probability of high inflation. B) tradeoff between supporting the exchange rate and adjusting the trade balance. C) tradeoff between supporting the exchange rate and maintaining economic growth. D) increased probability of a trade deficit. E) tradeoff between supporting the exchange rate and maintaining a balanced budget.