Under perfect competition
A. economic profits are greater than accounting profits.
B. the most efficient output is always the most profitable level of output.
C. the firms demand and marginal revenue curves are equal only in the short run.
D. economic profits are always zero in the long run.
D. economic profits are always zero in the long run.
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The liquidity preference function shows that as ________
A) real income decreases, so does the demand for real money balances B) the nominal interest rate increases, so does the demand for real money balances C) real income decreases, so does the real interest rate D) all of the above E) none of the above
A study of New York City (NYC) tax rates concluded that taxes on the nonmanufacturing sector should be higher since that sector has fewer alternatives. Manufacturers are more mobile and may move to avoid higher taxes. This means that
a. nonmanufacturing firms have a more elastic demand for NYC locations. b. manufacturing firms have an inelastic demand for the NYC locations. c. nonmanufacturing firms have relatively inelastic demand for the NYC locations. d. nonmanufacturing demand for NYC locations is perfectly elastic.
A behavioral economist attempts to convince a group of people to choose one option over another by rewording the language of the option she prefers so it emphasizes benefits rather than costs. This economist is engaging in ______.
a. positive framing b. negative framing c. positive compartmentalizing d. negative compartmentalizing
When the demand curve is a downward sloping straight line, the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis is ________ the quantity at which the demand curve intersects the horizontal (quantity) axis.
A. four times B. twice C. equal to D. half