In the long run, a perfectly competitive firm
A) can make either an economic profit or a normal profit.
B) incurs an economic loss.
C) makes zero economic profit.
D) can make an economic profit, zero economic profit, or incur an economic loss.
E) makes an economic profit.
C
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When prices of products are set below equilibrium,
a. society's resources are inefficiently allocated. b. firms expand output to increase profits. c. firms earn excessively high profits. d. consumers benefit from surpluses of cheap goods.
Recent decades have seen an increased share of exports due to globalization. Globalization has occurred for a number of reasons. List three reasons and briefly describe their effect on globalization
Most economists believe that
a. a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth. b. demand stimulus policies will reduce the long-term average rate of unemployment. c. expansionary monetary policy, if persistently followed, will reduce nominal interest rates. d. inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.
Minimum wage creates a(n) ______ of low-skilled workers.
a. scarcity b. equilibrium c. surplus d. shortage