The U.S. military defends Jacob from foreign attackers. The fact that Jacob enjoys this protection does not detract from others Americans' enjoyment of it. For this reason, we say that national defense is

If labor demand increases, the market wage rate will

a. increase b. decrease c. remain stable d. decrease initially and then rise by a larger amount e. decrease initially and then rise by a small amount

In a market that is contestable, but has only a few sellers, the

a. threat of new entrants will prevent prices from rising above the competitive level. b. producers will be able to charge prices that are high enough to produce long-run economic profits. c. producers will not face new competition because the barriers to entry are high. d. market will never be expected to come close to the competitive result.