In a perfectly competitive industry, i. entry by new firms shifts the market supply curve rightward. ii. exit by existing firms shifts the market supply curve leftward. iii. at all times existing firms make only zero economic profit
A) ii and iii
B) ii only
C) i and iii
D) i and ii
E) i, ii, and iii
D
You might also like to view...
Ann Trepreneur was formerly a landlord, renting her building for $1,200 a month. She now uses her building for her own florist shop. Pick the true statement
A) The building costs Ann $1,200 per month. B) Ann incurs no opportunity cost on the building. C) Ann uses the building as a free good. D) None of the above is true.
If property rights are not clearly defined and enforced, then
A) incentives for specialization based on comparative advantage are weakened. B) some potential gains from specialization and trade are lost. C) resources are devoted to protecting possessions rather than to production. D) All of the above answers are correct.
Accounting profit is equal to
A) total revenue minus dividends and interest. B) dividends paid. C) total revenue minus implicit costs. D) total revenue minus explicit costs.
To produce a firm's current output level, total cost is $600, and the total variable cost is $450 . Therefore, the firm has
a. a marginal cost of $150 b. sunk costs of $150 c. a marginal cost of $1,450 d. total fixed cost of $1,450 e. total fixed cost of $150