Which of the following reduces the potential for sustainable long run industry profits?
Entry
Opportunity cost differs from accounting cost
... [Show More] because of?
Implicit costs
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Which of the following statements is most likely true regarding economic and accounting profits?
Economic profits are generally less than explicit costs
If marginal cost equals marginal revenue at the current production level, the firm is?
Maximizing profits
If firms in the pizza industry are earning positive economic profits, which of the following will most likely occur in the future?
Additional firms will enter the market, economic profits of the firms in the industry already will begin to decline, and the market price for pizza will fall so ALL OF THE ABOVE
A good example of consumer-consumer rivalry is?
The process of bidding in an auction
Which of the following is one of the five forces?
Rivalry, Buyers Power, Sellers Power, so ALL OF THE ABOVE
Scarce resources are allocated towards the production of goods most valued by society because?
Firms have an incentive to maximize profits
Maximizing the firms current profits is the same as maximizing the lifetime value of the firm when?
Interest rate is larger than the growth rate in profits and both are constant.
A simultaneous increase in demand and supply will unambiguously?
Raise the equilibrium quantity
An ad valorem tax placed on the sales of an item will?
Make the supply curve steeper by rotating counterclockwise
When the government imposes a price ceiling above the market price, the result will be that?
A price ceiling set above the equilibrium price will have NO EFFECT on the market equilibrium.
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The law of supply indicates that as the price of a good decreases?
Quantity that producers offer to the market will decrease
When an economist refers to a product as an inferior good, it implies that?
Incomes rises, demand for that product will fall.
Compliment goods are ones in which?
An increase in the price of one good leads to a decrease in the demand of the other good.
Graphically, a hurricane destroys 30% of the orange trees in Florida will cause the supply curve for oranges to?
Shift leftward
Producer surplus is the difference between?
Market price and the minimum price required to induce production
For a chemical manufacturer that emits some air pollution, if the Gov increased the restrictions on allowable emission levels, it would cause the supply curve of chemicals to?
Shift to the left
Which of the following is most likely to shift the demand curve for electricity to the left?
Consumers becoming more energy conscious.
If a decrease in the price of hot tea increases the demand for honey, that indicates that?
The two goods are compliments
Consumer surplus is measured as the area?
Below the demand curve and above the market price
Holding all else constant, as additional firms leave an industry?
Less output is available at each given price
Which of the following provides an indication that an individual parameter estimate is significantly different from zero?
T-statistic
Suppose the demand for a product is Q= 4 - 2P. The demand for this product is?
Elastic
Given a log-linear demand curve, we know that?
The elasticity is constant at all prices
The ratio of the value of a parameter estimate to the standard error of a parameter estimate is known as?
T-statistic
If the own price elasticity of demand is equal to zero, then?
Consumers do not respond at all to [Show Less]