Zero profit in the economic sense means that firms are earning a normal rate of return.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Suppose the economy includes two distinct groups of people: wage earners and goods sellers. If the price level increases by 50 percent and nominal wages remain unchanged,
a. there will be no redistribution of purchasing power because all private wage earners in the U.S. economy receive indexed wages b. real wages will remain the same because nominal wages do not change c. there will be no redistribution of purchasing power because only changes in real income can change the distribution of income d. income will be redistributed from wage earners to goods sellers e. income will be redistributed from goods sellers to wage earners
For a signal between two adversaries to be credible, it must
A. be costly to fake or duplicate. B. be verified by a third party. C. be part of a sequence of transactions. D. have both a good news-bad news component.
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, if the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then
A. he is making the correct decision because the last market researcher hired was more productive than the last engineer hired. B. the last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher. C. he is making the correct decision because engineers make more than market researchers. D. the last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer.
The aggregate supply/aggregate demand model is used to help understand...
What will be an ideal response?