In long-run equilibrium, a firm in perfect competition has no economic profit.
Answer the following statement true (T) or false (F)
True
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The difference between money and income is that whereas income is an individual's
A) flow of earnings over a period of time, money is an individual's stock of currency and currency substitutes. B) stock of all assets, money is an individual's stock of currency and currency substitutes. C) flow of earnings over a period of time, money is an individual's stock of all assets. D) stock of currency and currency substitutes, money is an individual's stock of all assets.
Why is a point below the production possibilities curve less efficient than a point on that curve?
What will be an ideal response?
When a rare skill contributes to the production of something that consumers value highly the:
A. value of the marginal product is high. B. marginal product is high. C. marginal cost per unit is low. D. total product is high.
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?
A. 20 to plant 1, 50 to plant 2 B. 10 to plant 1, 40 to plant 2 C. 20 to plant 1, 60 to plant 2 D. 20 to plant 1, 30 to plant 2 E. 40 to plant 1, 40 to plant 2