Which of the following statements is TRUE?
A) The presence of positive economic profit in a perfectly competitive market is consistent with the characteristics of a long-run competitive equilibrium.
B) When firms in a perfectly competitive market incur economic losses, some will exit in the long run, thereby shifting the industry supply curve rightward.
C) If a profit-maximizing firm in a perfectly competitive market is making an economic profit, then it must be producing at a level of output where price is greater than average total cost.
D) If a profit-maximizing firm in a perfectly competitive market is incurring an economic loss, then it must be producing at a level of output where price is greater than average total cost.
C
You might also like to view...
Why do some firms use large amounts of capital and small amounts of labor while others use small amounts of capital and large amounts of labor?
What will be an ideal response?
$1 received n years from now has a value today of
A) ($1 + i)/i. B) $1/(1 + i). C) ($1 + i /i. D) $1/(1 + i .
Changes in the capital stock are caused by changes in ________
A) the quantity of labor B) depreciation and investment C) depreciation and entrepreneurship D) depreciation and the quantity of labor
Which of the following statements is least accurate about the period between the end of World War I and 1930?
a. African Americans migrated in large scale from the north to the south. b. There was a significant increase in activity by the Ku Klux Klan. c. A Constitutional Amendment gave women the right to vote. d. A Constitutional Amendment prohibited the manufacture, distribution, and sale of intoxicating liquor.