When will an industry's long-run supply curve be horizontal at firms' break-even price?
a. When expansion of the industry allows new input markets to develop.
b. When some firms are more efficient than others.
c. When specialized skills play a significant role in production.
d. When firms are identical and there is no factor-price effect.
d. When firms are identical and there is no factor-price effect.
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Price elasticities of supply are always
a. equal to price elasticities of demand when the market is in equilibrium b. negative c. positive d. greater than one e. less than one
Suppose that Rockport Shoes planned to produce and sell $200 million of shoes in 2003, but by year's end was able to sell only $180 million. The remaining unsold $20 million would be recorded as
a. personal consumption expenditures b. a business loss c. an addition to business inventory d. an increase in disposable income e. a part of the underground economy