Assuming the firm in the graph shown is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a monopolistically competitive firm that is:
These are the cost and revenue curves associated with a firm.
A. making positive economic profits.
B. earning negative economic profits.
C. in long-run equilibrium.
D. All of these statements are true.
C. in long-run equilibrium.
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Market equilibrium occurs where supply equals demand
Indicate whether the statement is true or false
A competitive price-taker firm would be willing to remain in the industry in the long run at zero economic profit because
a. it would find it too difficult to exit from the industry in the long run. b. accounting profit would be negative. c. it is covering all costs, including the opportunity cost of capital and labor. d. its sunk costs would prevent it from leaving the industry.
GDP measures
A. the market value of final products produced in the nation during the year.
B. the sum of the market value of final products produced and imported during the year.
C. the market value of intermediate products produced during the year.
D. the sum of the market value of both final and intermediate products produced during the year.
Answer the following questions true (T) or false (F)
1. Expansionary monetary policy actions will result in an increase in net farm income as the demand for farm commodities increase. 2. Contractionary fiscal policy actions will result in a decrease in net farm income as the demand for farm commodities decrease. 3. Expansionary monetary policy actions will lead to a growth in farmland values and farm equity as net farm incomes rise and interest rates fall.