Refer to Figure 23.2 for a perfectly competitive firm. Given the current market price of $100, we expect to see
A. Entry into this industry.
B. Costs rise to absorb the profits earned by the firms in the industry.
C. Exit from this industry.
D. No change in the number of firms in this industry.
Answer: A
Economics
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Which of the following occurs while moving along a short-run aggregate supply curve?
A) The money wage rate and the price level change by the same percentage. B) The money wage rate changes and the price level is constant. C) The price level changes and the money wage rate is constant. D) Neither the price level nor the money wage rate changes.
Economics
If a decrease in the price of good A causes a decrease in demand for good B, the two goods are
A) substitutes. B) complements. C) normal. D) inferior.
Economics