Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?
A) Economic profits can be positive since firms have some degree of monopoly power.
B) Economic profits will be positive since the firm has a downward sloping demand curve.
C) Economic profits will tend towards zero since positive profits will attract new firms into the industry.
D) Economic profits can be negative since there is so much competition in the market.
C
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In the United States, recessions are informally defined as ________ in real GDP
A) two consecutive quarters of positive growth B) two consecutive quarters of negative growth C) three consecutive quarters of negative growth D) three consecutive quarters of positive growth
Who benefits when the exchange rate of Japanese yen per dollar increases?
a. Japanese exporters b. Japanese tourists c. Japanese importers d. American exporters e. Japanese students in the U.S. whose source of income is money sent to them from Japan.