When economic profits are zero for a firm, it means that:
A. no firms will enter or exit the industry.
B. average revenue slightly above average total cost.
C. average variable costs are minimized.
D. accounting profits are also zero.
A. no firms will enter or exit the industry.
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For a natural monopoly, the efficient quantity is produced when the firm is regulated so that
A) P = ATC. B) P > ATC. C) P = MC. D) P > MC. E) P < MC.
Which of the following is a key characteristic of economic freedom?
a. institutions and policies supportive of voluntary exchange b. freedom to compete c. protection of people and their property from aggressors d. all of the above
(Consider This) According to the piece "Wannamaker's Lament," how have firms responded to the evidence that most advertising campaigns have little impact on sales?
A. Firms have substantially cut their advertising budgets to focus more on product quality. B. Firms have substantially increased their advertising budgets in order to hit the spending threshold necessary to impact sales. C. Firms have substantially cut their advertising budgets to focus more on new product development. D. Firms have conducted a lot of simple experiments to determine what might increase sales.
The situation where "the few who yell the loudest gets heard" is referred to as the:
A. Special-interest effect B. Principal-agent problem C. Moral hazard problem D. Adverse selection effect