Question

A perfectly competitive increasing cost industry is in long-run equilibrium. Due to a change in tastes and preferences, there is a decrease in demand. Which of the following best describes the effect on the industry? The price will A. increase comma firms will produce more comma profits will increase comma and more firms will enter until profit returns to zero. B. decrease comma firms will produce less comma profits will be below zero comma and firms will exit until profit returns to zero. C. decrease comma firms will produce more comma profits will decrease comma and more firms will enter until profit returns to zero. D. decrease comma firms will produce less comma profits will increase comma and more firms will enter until profit returns to zero.

Answer 1

While traveling to Europe, Phelan exchanged 250 US dollars for euros. He spent 150 euros on his trip. After returning to the United States he converts his money back to US dollars. How much of the original 250 US dollars does Phelan now have?

1 European euro = 1.3687 US dollars

44.70 US dollars

73.06 US dollars

136.87 US dollars

140.41 US dollars