In long-run equilibrium, a competitive firm can earn zero profit only if its technology exhibits
a. increasing returns to scale.
b. decreasing returns to scale.
c. constant returns to scale.
d. regressive returns to scale.
c. constant returns to scale.
You might also like to view...
In response to the overvalued dollar in the early 1970s, the German Bundesbank bought dollars and sold marks to keep the exchange rate fixed, gaining international reserves
The huge purchase of international reserves meant that the German monetary base began to ________, leading to ________ growth in the German money supply. A) decline; sluggish B) decline; rapid C) grow; sluggish D) grow; rapid
The concept of "rational expectations" is consistent with the notion of
a. utility maximization. b. profit maximization. c. strong mechanisms towards equilibrium in markets d. auction markets. e. all of the above.
Refer to the table below. What is the probability of selling less than 24 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.00
B) 0.10
C) 0.90
D) 0.80
Monetary policymakers can respond to the impact that positive inflation shocks have on output by shifting the:
A. short-run aggregate supply curve to the left. B. monetary policy reaction curve right. C. monetary policy reaction curve left. D. short-run aggregate supply curve to the right.