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Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
More close substitutes will appear in the market until economic profits are zero.
The firms that dropped out of the market will reenter once the level of economic losses is zero.
Firms will continue to exit the market until economic losses are equal to zero.
The demand functions of all the firms remaining in the market will become relatively more elastic.
If bond traders expect that an economy is sliding into recession, they ________ in anticipation of ________.
Elucidate how many car companies will buy a latest car assembly machine. Interest payments are made once a year.
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Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective?
A pharmaceutical firm faces monthly demands in the U.S. and Mexican markets for one of its patented drugs.
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Pat and Chris brew beer and make pizza. Pat takes 4 hours to brew a gallon of beer and 2 hours to make pizza. Chris takes 6 hours to brew a gallon of beer and 4 hours to make a pizza, what is each persons opportunity cost of making pizza?
Billy Riggan is in charge of all technical developments at Always Round Tire. He makes all the choices concerning product innovations in the company. He finds that he is overworked and that several of his research scientists seem to be spending work ..
Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.
Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (considers each case separately; and assumes that only one..
During the business cycle, we can expect supply side economic growth:
Pat and Kris are roommates. They spend most of their time studying (of course), but they leave some time for these favourite activities. Making pizza and brewing root beer they decide to aside 6 hours for these activities. What is the opportunity cos..
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