In a perfectly competitive industry, in the long run:
A. firms earn a positive economic profit.
B. firms earn zero economic profit.
C. firms earn a negative economic profit.
D. firms might earn a positive, zero, or negative economic profit.
Answer: B
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The market value of downtown real estate is most basically determined by the
A) assessment of the taxing authorities. B) market value of the building already on a particular plot of land. C) use to which it is currently being put. D) uses to which people would like to put it if given a chance. E) whatever it costs to convert the land to its next best use.
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires only unionized labor. The marginal cost to the union is $10 per unit of labor. The union will sell
A) 20 units of labor at a wage of $10. B) 20 units of labor at a wage of $40. C) 20 units of labor at a wage of $50. D) 20 units of labor at a wage of $70.
Gains from trade can be realized if each country specializes in the production of a good in which it has a comparative advantage
a. True b. False Indicate whether the statement is true or false
Studies have shown that differences in wages between men and women:
A. are explained in part by differences in productivity and in part by discrimination. B. are fully explained by differences in productivity, education, and skill. C. have disappeared in the last five years. D. are fully explained by discrimination.