I don't need explain All true or false question.In a free market economy, competitive provides firms with a strong incentive to avoid developing...
This question has been answered
Question

I don't need explainAll true or false question.

1.     In a free market economy, competitive provides firms with a strong incentive to avoid developing improved products and discovering lower cost methods of production.


2.     When the price elasticity of demand is less than one it means demand is relatively price inelastic, and the percentage change in price is greater than the percentage change in quantity demanded.


3.     A "profit-maximizing" price searcher will want to charge a price that is equal to marginal cost.


4.     Unlike price takers, price searchers do not maximize profits by producing at the point where marginal revenue is equal to marginal cost.


5.     During the last two centuries, after adjustment for inflation, stocks have yielded an average real return on about 3 percent per year, compared with a real return of about 7 percent per year for bonds.


6.     One of the advantages of the corporate form of business ownership is limited liability.


7.     According to the textbook only about 10% of U.S. households own stock, either directly or indirectly through an equity mutual fund.


8.     If the marginal revenue is less than the marginal cost, a profit-maximizing price taker should increase its output.


9.     "Price discrimination" is the term used in Chapter 23 to describe a situation where a firm is charging the same price to all of its customers for the same product.


10.  The Random Walk Theory assumes that current stock prices already reflect the best-known information about the future.


11.  In the year 2008, nearly three out of four business firms in the United States were organized as proprietorships.


12.  Demand will be more price inelastic, when the time the consumer has to adjust to price changes is short.


13.  Demand will be more price inelastic, when the number of "good" substitutes available to consumers is large.


14.  The limited liability of stockholders in the corporate business structure makes it easier to raise equity capital.


15.  New issues of stocks and bonds are bought and sold by the investing public in the secondary securities markets.


16.  According to the textbook, economic models fully capture the role played by entrepreneurs in a free-market economic system.


17.  An downward-sloping portion of a long-run average total cost curve is the result of diseconomies of scale.


18.  Entry and exit of firms drive economic profits to zero in the long run in competitive price-searcher markets.


19.  When demand is relatively price elastic, price and total revenue will change in the opposite direction.


20.  If the marginal revenue is greater than the marginal cost, a profit-maximizing price taker should reduce its output.


21.  Demand will be more price inelastic, when the time the consumer has to adjust to price changes is long.


22.  As business firms exit a perfectly competitive market, this will typically increase the profits of those firm who remain in the market.


23.  As new firms enter a perfectly competitive market, this will typically increase the profits of those firm who were already in the market.


24.  The opportunity costs associated with a firm's use of the resources that it owns are the firm's explicit costs.


25.  Most business firms in the "real world" are price takers, not price searchers.


26.  A "profit-maximizing" price searcher will want to charge a price that is greater than marginal cost.

Answered by Expert Tutors

Fusce dui lectus, con

dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Do
Step-by-step explanation

a. Fusc

congue

tesque

, consec

facil

acinia

dictum vitae odio. Done

or nec

et, cons

cing eli

s ante,

Donec a

ac, dict

ipiscing

onec aliq

Donec al

m ipsum

ongue ve

amet, c

risus an

icitur l

ur laore

onec aliq

lestie co

a molest

ec fac

Other answer

sque da

m ipsu

ur laor

or nec

ipisci

o. Don

Fusce

fficitu

icitur

gue vel

itur laor

entesque dap

, dictum

m ipsum dol

nec fa

ia pulvi

m ipsum

trices ac m

sum dol

sus ante

ctum vi

ipsum dolor

pulvin

s ante,

ctum vi

trices

gue

Step-by-step explanation

et, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fuscepulv

gue

e vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibuspulv

gue

inia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequffic

gue

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar toffic

gue

ctum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultramet, co

gue

m ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesquepulv

gue

or nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue velconsec

gue

et, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapiconsec

gue

m risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscffic

gue

m ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur lffic

gue

, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet,nec

gue

lestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Loconsec

gue

molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Loreffic

gue

trices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consenec

gue

a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Loremffic

gue

m ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreeconsec

gue

et, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet.consec

gue

or nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magnnec

gue

ec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac mpulv

gue

usce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing eliffic

gue

Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilispulv

gue

s ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum donec

gue

molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consecffic

gue

ongue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinffic

gue

ctum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nffic

gue

fficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue velnec

gue

The student who asked this found it Unhelpful
Overall rating 0%

"Thank you for trying but 6 questions were wrong><"

Get unstuck

483,215 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses