In the long run in a perfectly competitive industry
A. opportunity costs are negligible.
B. only entrepreneurs will earn more than their opportunity costs.
C. some firms will be experiencing economic losses.
D. economic profits will be zero.
Answer: D
You might also like to view...
In a competitive labor market, if the demand for labor decreases, labor demand will shift to the:
A. right and wages will increase. B. left and wages will increase. C. right and wages will decrease. D. left and wages will decrease.
In foreign exchange markets, demand and supply become closely interrelated, because a person or firm that demands one currency must at the same time _____________ another currency—and vice versa.
a. supply b. create c. demand d. locate
If actual inflation is less than the expected rate of inflation, then probably
a. the borrower gains at the expense of the lender. b. neither the borrower nor the lender gains. c. the lender gains at the expense of the borrower. d. the purchasing power of the borrower is increased.
Glintz and Meck are two oligopolistic firms that agree to align their pricing strategies for the coming year. However, Glintz suspects that Meck will not honor the agreement. What can Glintz do to minimize its potential loss in this situation?
a. Form a cartel with Meck to ensure that collusion succeeds. b. Defect from the agreement first by lowering its prices. c. Convince other competitors to join the collusive oligopoly. d. Defect from the agreement first by raising its prices.