PLEASE ANSWER THE QUESTION WITH THE CORE ECONOMY UNIT 16.4 TO 16.9 !!

QUESTION 1

Whichtwoof the following conditions lower the markup at which firm entry and exit are zero?

Select one or more:

a.Lower expected long-run tax rate.

b.Lower expected profits on foreign investments.

c.Higher opportunity cost of capital.

d.Higher risk of expropriation of owners in the home economy.

QUESTION 4

Consider Figure 16.7a below:

B High markup, attracts entry of firms A Equilibrium markup, * Markup, H Low markup, promotes C exit of firms Profit-maximizing markup 190 210 250 Firms entering Equilibrium Firms leaving number of firms Number of firms, n