Which of the following is true for firms that produce in markets where there are no barriers to entry?
a. The firms will always make positive economic profits in the long run.
b. The firms will always make positive economic profits in the short run.
c. The firms will always make zero economic profits in the short run.
d. The firms will always make zero economic profits in the long run.
D
You might also like to view...
People demand money for all of the following reasons EXCEPT
A) it generates a rate of return. B) it is a medium of exchange to make payments. C) it is a store of value. D) it can meet unplanned expenditures.
Which of the following do NOT provide charters?
A) the Office of the Comptroller of the Currency B) the Federal Reserve System C) the National Credit Union Administration D) state banking and insurance commissions
The price of one nation's currency in terms of the currency of another nation is called the
A) IMF rate. B) fed funds ratio. C) exchange rate. D) discount rate.
The introduction of a subsidy in a perfectly competitive marketplace that is originally in equilibrium will raise total surplus
a. True b. False Indicate whether the statement is true or false