A perfectly competitive firm initially is earning zero economic profit. Then, a decrease in demand for the firm's product occurs. Of the following, in the long run which action listed below is the firm most likely to take?
A) Increase the quantity it produces.
B) Increase its advertising to increase the demand for its product.
C) Exit the market.
D) Increase the size of its plant.
C
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Assume the graph shown represents Grace's budget constraint. Which of the following is true?
A. Grace's total utility is constant along her budget constraint.
B. Grace's marginal utility of each good is the same for each combination of goods on her budget line.
C. Grace's total expenditure is constant along her budget constraint.
D. Grace is indifferent between consuming any bundle that lies on the budget constraint.
In a labor market dominated by a union, the supply of labor to a firm is depicted as a horizontal line
a. True b. False
Which statement about population growth is true?
a. Rapid population growth lacks economic benefits. b. The fastest population growth occurs in wealthy, developed countries. c. Rapid population growth does not have to impede economic growth. d. Population growth usually results in a decline in per capita output.
Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In the long run, Globe could I. make a positive economic profit. II. make zero economic profit. III. incur an economic loss
A) Only I B) Only II C) I, II, and III D) Only I and II