The entry of new firms into a market stops when:
a. the accounting profit of existing firms falls to zero.
b. the general price level in the economy rises.
c. the rate of interest in the economy declines.
d. the economic profit of existing firms falls to zero.
e. the corporate taxes are relaxed.
d
Economics
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Hardware stores charge higher prices for snow shovels after a big snowstorm. What role do prices play in the snow shovel market?
What will be an ideal response?
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If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
A) $110,000. B) $10,000. C) $100,000. D) $90,000.
Economics