Entry of new firms into a perfectly competitive market raises the product's price

The _________________ is a relationship between inputs and output that identifies the maximum output which can be produced per time period by each specific combination of inputs.

Fill in the blank(s) with the appropriate word(s).

Suppose that the equilibrium interest rate is 8 percent, but the actual interest rate is 5 percent. Very quickly,

a. bond prices fall b. bond prices will rise c. the interest rate will begin to fluctuate until bondholders reduce their demand for money d. the primary bond market will start its adjustment process e. the supply and demand for money will both increase