If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone.
B) the firms must be superior and will continue to make an economic profit.
C) new firms will enter the industry.
D) they are not equating marginal revenue to marginal cost.
E) government regulation will be imposed to decrease their profit.
C
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Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75. Is this likely to be a successful price discriminating strategy?
A) No, because there are many different brands of Blu-ray players and consumers will shop around. B) Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers. C) Yes, firms price discriminate to maximize profits. D) No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
If marginal profit is zero, then average profit is at a maximum.
Answer the following statement true (T) or false (F)
An increase in a consumer's income will always increase the demand for a good
a. True b. False Indicate whether the statement is true or false
One implication of the Condorcet paradox is
a. that the order in which things are voted on can affect the result. b. that the order in which things are voted on is irrelevant. c. that you do not want to be in charge of arranging which items are voted upon first. d. that when there are only two items being voted on the order matters.