Answer the following questions true (T) or false (F)
1. If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product, the firm will be able to earn economic profits in the long run.
2. Firms in perfect competition produce the productively efficient output level in the short run and in the long run.
3. Firms in perfect competition produce the allocatively efficient output in the short run and in the long run.
1. FALSE
2. FALSE
3. TRUE
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Dollarization refers to:
a. increased trade with the United States, resulting in a glut of dollars circulating in the domestic economy b. the fall of the U.S. dollar. c. the dominance of the U.S. dollar in international finance. d. the adoption of any foreign currency as an official currency by nations outside the United States, such as El Salvador and Ecuador.
The advantage of forward contracts over future contracts is that they
A) are standardized. B) have lower default risk. C) are more liquid. D) are more flexible