In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit
Indicate whether the statement is true or false
TRUE
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An agency that regulates product markets is the
A) Equal Employment Opportunity Commission. B) Environmental Protection Agency. C) Federal Trade Commission. D) Occupational Safety and Health Administration.
An economist is told that concentration in the cement industry has increased. He can safely conclude that
a. cement production must have fallen in the industry. b. competition in the cement industry has decreased. c. there are fewer cement producers than before. d. All of the above are correct.
The supply-side effects of a reduction in taxes are the result of
a. increases in the disposable income of households accompanying reductions in tax rates. b. the stimulus effects of increases in government expenditures. c. increased attractiveness of productive activity relative to leisure and tax avoidance. d. reductions in interest rates that generally accompany expansionary fiscal policy.
Today's supply curve for iPods could shift in response to a change in
a. today's price of iPods. b. the expected future price of iPods. c. the number of buyers of iPods. d. All of the above are correct.