At equilibrium, each firm will realize:
Refer to the cost table above. Now suppose that there are 600 identical firms in this industry, each with the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows:
A. An economic profit of $155
B. An economic profit of $35
C. A loss of $45
D. A loss of $135
A. An economic profit of $155
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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is France's most likely future PPF?
A) PPF2 B) PPF1 C) PPF0 D) either PPF0 or PPF1 E) None of the above because economic growth will not happen in India.
The term used to describe a situation in which markets do not allocate resources efficiently is
a. economic meltdown. b. market failure. c. equilibrium. d. the effect of the invisible hand.