In the long run, each firm in a competitive industry earns
a. zero accounting profits.
b. zero economic profits.
c. positive economic profits.
d. positive, negative, or zero economic profits.
b
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In perfect competition, at all levels of output the market price is the same as the firm's ________
A) marginal revenue B) normal profit C) average variable cost D) fixed cost
Suppose you withdraw $1,000 from your savings account and put it in your checking account. Briefly explain how this will affect M1 and M2
What will be an ideal response?
Classical economists reject the idea that
a. more than one motive is involved in the demand for money b. a change in the money supply cannot affect real GDP c. the transactions demand for money cannot influence the velocity of money d. the velocity of money is variable e. the economy always operates at full employment
"Cream skimming" usually results in
a. cross-subsidization of markets. b. subsidies to rural consumers of the service. c. regulations to provide universal service. d. monopoly.