The firm in a perfectly competitive industry
a. is a price-taker
b. is a price-maker
c. attempts to differentiate his/her product through advertising
d. will earn an economic profit in the long run
e. can charge any price it wishes
A
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The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve
A) may be above, below, or equal to full-employment output. B) is always above full-employment output. C) is always below full-employment output. D) always corresponds to full-employment output.
According to the World Bank, Albania does one of the worst jobs as a country enforcing the rule of law. The consequence of a weak rule of law is
A) strong property rights enforcement leading to greater investment. B) more risk taking on the part of entrepreneurs and greater economic investment. C) a decrease in cash transactions and increased efficiency. D) difficulty in attracting investment and low economic growth.
A monopolist that maximizes total revenue earns maximum economic profit
a. True b. False Indicate whether the statement is true or false
The concept of economic rent is associated with the economist
A) Adam Smith. B) Karl Marx. C) David Ricardo. D) John Maynard Keynes.