Perfectly competitive firms are earning economic profits at a market price of $12 and an average total cost of $10. If new firms enter and do not affect the cost for all firms, the market price will ________ until it reaches ________.

Although Europe is not an OCA, some areas in the European Union would probably meet the criteria. Which of the following would meet them?

A) France, Sweden, and Denmark B) the former Eastern bloc nations of Yugoslavia, Romania, and Bulgaria C) the Netherlands, Denmark, and Britain D) Italy, Germany, Austria, Belgium, the Netherlands, and Luxembourg

When a nation imports a good, its ________ surplus decreases and its ________ surplus increases

A) consumer; producer B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer