In short-run equilibrium in a perfectly competitive market, firms always make zero economic profit
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is the correct statement of the marginal rule for optimal input proportions? The input proportion is optimal when
A. PA= PB. B. MPPA= MPPB. C. PA×MPPA= PB×MPPB. D. PA/PB= MPPA/MPPB.
A bureau's total output is decided at the same time as its budget just as in the private sector
a. True b. False
A $2,000 decrease in investment will shift the aggregate expenditures curve down by:
a. exactly $2,000 and will decrease the equilibrium level of real GDP by exactly $2,000. b. exactly $2,000 and will decrease the equilibrium level of real GDP by less than $2,000. c. exactly $2,000 and will decrease the equilibrium level of real GDP by more than $2,000. d. less than $2,000 and will decrease the equilibrium level of real GDP by less than $2,000.
If the CPI rises, the number of dollars needed to buy a representative basket of goods
a. increases, and so the value of money rises. b. increases, and so the value of money falls. c. decreases, and so the value of money rises. d. decreases, and so the value of money falls