Author Question: A firm that is earning zero economic profits has a strong incentive to exit the industry. a. True ... (Read 98 times)

ap345 · **on:** Jun 30, 2018

A firm that is earning zero economic profits has a strong incentive to exit the industry.
a. True
b. False
Indicate whether the statement is true or false

Question 2

What is the most likely consequence when people's preference for current consumption rises in relation to future consumption?
a. Interest rates will fall, and the rate of extraction of exhaustible natural resources will decrease.
b. Interest rates will fall, and the rate of extraction of exhaustible natural resources will increase.
c. Interest rates will rise, and the rate of extraction of exhaustible natural resources will decrease.
d. Interest rates will rise, and the rate of extraction of exhaustible natural resources will increase.
e. Interest rates will fall, and there will be no effect on the rate of extraction of exhaustible natural resources.