If the market demand increases for a good sold in a perfectly competitive market, individual firms in the market:
A. will be able to charge a higher price for their product.
B. will need to lower price in order to remain competitive.
C. will not be able to change their price.
D. will begin earning economic losses.
Answer: A
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Next period's capital is equal to current-period investment
A) plus the amount of current capital left over after depreciation. B) minus the amount of current capital left over after depreciation. C) plus the amount of current period depreciation. D) minus the amount of current period depreciation.
In some countries, brand name fast-food restaurants are not allowed to operate. Such restrictions are likely to
a. enhance the social welfare of society. b. increase the number of fast-food restaurants. c. reduce barriers to entry in imperfect markets. d. reduce the competitive nature of local fast-food markets.