Suppose firms in a perfectly competitive industry are making economic profits. As a result I. new firms enter the industry. II. the market price falls. III. the economic profits of the existing firms decrease

A bilateral negotiation is a bargaining mechanism in which:

A) a third party or an authority intervenes and decides the prices of the products traded in a market. B) a single seller and a single buyer confront one another with bids and asks. C) multiple buyers bargain with a single seller to determine the trading price. D) multiple sellers bargain with a single buyer to determine the trading price.

When the investment is graphed as a function of real GDP

A) it graphs as a vertical straight line. B) it graphs as a 45-degree line starting at the indicated level of investment. C) it graphs as a negatively sloped line indicating the inverse relationship between interest rates and investment. D) it graphs as a horizontal straight line at the level of investment.