When entry barriers are low, firms in a competitive price-searcher market
a. can expect many new rivals to enter regardless of current profitability.
b. can expect competing firms to enter the market if the activity is profitable.
c. can never earn economic profit.
d. will always be able to earn economic profit.
B
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Why may a central bank intervene in the foreign exchange market when its currency is appreciating?
A) concerns about the country's exports becoming less competitive B) concerns about inflation C) concerns about imports becoming less competitive D) to sterilize the effects on the domestic economy
In an imperfectly competitive labor market, the firm is faced with a(n) ________ MPP curve and a(n) ________ MR curve
A) downward sloping; upward sloping B) downward sloping; downward sloping C) upward sloping; downward sloping D) downward sloping; horizontal