In perfectly competitive markets, an implication of entry and exit in response to economic profit and loss is that:
A. firms will earn zero economic profit in the long run.
B. market demand is completely elastic.
C. firms must earn positive economic profit in the long run.
D. all firms will exit the market in the long run.
Answer: A
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A) 35 B) 0.75 C) 5 D) 1.3
Suppose that a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, domestic suppliers will supply ________ of that good after it opens itself to international trade.
A. same amount B. more C. less D. none
Which of the following factors is not a typical cause of changes in land rent?
A. Demand for land B. Supply of land C. Prices of the products produced from the land D. Prices of other resources employed along with land
Pricing goods below cost to drive an industry in another country out of business is called ______.
Fill in the blank(s) with the appropriate word(s).