In monopolistic competition there are ________ barriers to entry, so therefore in the long run, economic profit ________
A) no; is substantial
B) no; equals zero
C) many; equals zero
D) many; is substantial
E) many; might be earned depending on the degree of product differentiation
B
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One reason why the spending side of the budget is more susceptible to special interests than the tax side is because _____
a. spending can be allocated geographically, but taxation cannot b. tax programs are largely determined by the Internal Revenue Service, not Congress c. people do not care about taxation d. the administrative costs of spending programs are lower, making change cheaper
Suppose I have $1,000 to put into a one-year CD. Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent. If I place my money in Squidbank, my economic profit on the investment is
a. 5.40 percent b. 5 percent c. 0.40 percent d. 0.15 percent e. -0.40 percent