1. In a market best described as a price taker market with low entry barriers,an increase in consumer demand will lead to economic profits not only in the short run but also in the long run.

True or False

2. In competitive price taker markets, if producers of a product develop new technologies which lower their costs of production, this will lead to lower prices and higher levels of output.

True or False

3. When barriers to foreign trade are reduced and firms are able to sell in manu difference markets, firms are likely to become less specialized and smaller

true or false

4. When the government imposes a high tariff on foreign producers of a prduct this additional barrier to entry into this American market will increase the likelihood that American producers in the market wil be able to earn economic profits

true or false