Which of the following statements about profit maximizing firms in a competitive market is FALSE?
A) Firms earn no economic profit in the long run.
B) Marginal revenue does not have to equal marginal cost.
C) p - MC = 0.
D) Price equals marginal revenue.
B
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In economics, technology only refers to the development of new products
Indicate whether the statement is true or false
A proprietorship is
A. taxed twice-once when it pays business taxes and again when its owner pays personal income taxes. B. not often found in developed economies, in which corporations have become the most common form of business organization. C. difficult to form. D. risky for its owner, who is personally responsible for the firm's debts.
Crowding out can weaken the effect of an expansionary fiscal deficit. Explain.
What will be an ideal response?
Emily is a writer. She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000. If the publisher prints 1 million copies that sell for $25 each, what is the contribution to GDP of Emily's novel?
A) $25 million B) $20 million C) $500,000 D) $50,000