In a perfectly competitive industry
A. economic profits may exist in the short run but not in the long run.
B. economic profits may persist in the long run if consumer demand is strong and stable.
C. no economic profits can exist in either the short run or the long run.
D. economic profits may exist in the long run but not in the short run.
Answer: A
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Which of the following is true?
A) Much of the trade of the European Union (EU) countries is with EU countries. B) Industrialized countries tend to trade relatively little and largely with developing countries. C) Developing countries in Africa and South America tend to trade the most and largely with themselves. D) All of the above are true.
We can be more confident that standard deviation is a good measure of the risk of an asset (held in isolation) when
A) the number of different possible returns on the asset rises. B) the probabilities attached to the possible returns on the asset are less equal. C) the possible returns on the asset are distributed symmetrically around the mean. D) the asset has a longer maturity.
What do bondholders and stockholders have in common?
A. Both are shareholders in the company. B. Both receive fixed payments on their securities each year. C. Both are claimants. D. Both have voting rights.
Using the fiscal year 2017 estimates, the largest component of state and local revenue is the
A) individual income tax. B) corporate income tax. C) revenue from the federal government. D) sales, excise, and gross receipts taxes.