When firms enter a market, the supply increases and price:
A. falls and profits increase.
B. increases and profits decrease.
C. falls and profits decrease.
D. increases and profits increase.
Answer: C
Economics
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Externalities are commonly generated from
a. purely competitive retail industries. b. modern computer technologies. c. ordinary consumption and production activities. d. benefits from further pollution abatement, which are zero.
Economics
People consume more fresh fruit in the summer than during the rest of the year, yet the prices of fresh fruit are lower in the summer than in other seasons. What accounts for this?
A) Fresh fruit is not subject to the law of supply. B) The supply of fresh fruit increases in the summer. C) Fresh fruit is an inferior good. D) Fresh fruit is not subject to the law of demand.
Economics