In the long run, under perfect competition:
A) firms earn positive economic profit because of economies of scale.
B) firms earn positive accounting profit because of government regulations.
C) firms earn zero economic profit because of free entry and exit of firms.
D) firms earn negative economic profit because of free entry and exit of firms.
C
You might also like to view...
Intelligent policymaking requires making trade offs, which means
A) accepting unethical but unavoidable compromises. B) giving up what is less valuable for what is more valuable. C) putting one's own interests ahead of the interests of others. D) sacrificing some people's welfare to other people's welfare. E) violating someone's rights.
What is the difference between willingness to accept and willingness to pay? For a trade to take place, does the willingness to accept have to be lower, higher, or equal to the willingness to pay?
What will be an ideal response?
Which of the following is true under unregulated monopoly?
a. Monopoly results in more output than under pure competition. b. Monopoly results in a more efficient allocation of resources than competition. c. Monopoly expands the choices available to consumers. d. Monopoly results in lower output and higher prices than competition.
If a country’s workers can produce 10 hamburgers per hour or 5 bags of French fries per hour. If there is no trade, the price of 1 bag of fries is 2 hamburgers.
Answer the following statement true (T) or false (F)