If a firm makes zero economic profit, then the firm
A) has no incentive to stay in the industry.
B) is better of exiting the industry.
C) is indifferent between staying and exiting the industry.
D) will shut down.
C
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For which of the following is demand most likely to be perfectly inelastic?
a. BMW automobiles b. Pepsi Cola c. hot dogs d. insulin e. Tylenol
According to Alfred Marshall, small firms produce a good more efficiently than a monopoly
Indicate whether the statement is true or false
When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:
A. only show an increase in liabilities of $25,000. B. show an increase in assets and liabilities of $25,000. C. only show an increase in assets of $25,000. D. still show the same total amount of assets as before the purchase.
The price elasticity of supply at a point is the:
A. change in quantity supplied divided by the change in price. B. change in price divided by the change in quantity supplied. C. percentage change in price divided by the percentage change in quantity supplied. D. percentage change in quantity supplied divided by the percentage change in price.