A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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What does it mean for a nation to have an absolute advantage in producing a product?
What will be an ideal response?
Which of the following labor market trends have occurred in both the U.S. and in most Western European countries?
A. a substantial growth in real wages over the twentieth centaury B. a substantial growth in real wages and double digit rates of unemployment in the 1990s C. continuous and substantial growth in real wages and substantial job growth D. a pronounced decrease in wage inequality and double digit rates of unemployment in the 1990s
The marginal product of any input into the production process is the:
A. constant ratio of inputs to outputs. B. increase in output that is generated by an additional unit of input. C. ratio total output divided by total quantity. D. decrease in input that is generated by an additional unit of output.
One of the biggest benefits of a market-based economy is
A. centralized planning. B. the ability to adapt quickly to change. C. consumer protection policies. D. government regulation.