Consider a competitive industry in which a "green" company uses a cleaner but costlier production method than is used by other firms. In the long run, the "green" company will:
a. earn more profit than will the typical firm in the industry.
b. drive its competitors out of business.
c. have economic losses and exit the industry.
d. charge a higher-than-average price for its product.
c
Economics
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Stabilization of business cycle fluctuations focuses on the long run
Indicate whether the statement is true or false
Economics
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A) 1%. B) 2%. C) 3%. D) 4%.
Economics