When price equals marginal cost
A) firms make zero profits.
B) firms make positive profits.
C) the industry is in long-run equilibrium.
D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.
D
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The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run
Indicate whether the statement is true or false
Which of the following will result in a decrease in demand for residential housing in the short run?
A) a decrease in the price of lumber B) an increase in the wages of carpenters C) a decrease in real household incomes D) a decrease in the prices of residential housing
The old industrial unions are being supplanted by
A. Private sector unions. B. Unions of service workers. C. Union shops. D. Craft unions.
The quantity theory of money is based on the equation of ______.
Fill in the blank(s) with the appropriate word(s).