In an industry with free entry and exit, positive economic profit:
A. can never occur.
B. cannot be sustained indefinitely.
C. can be sustained indefinitely.
D. indicates a market failure.
Answer: B
You might also like to view...
Decrease in government spending will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Property rights need to be secure
A) to promote economic development. B) to encourage environmentalism. C) to promote an equal distribution of income. D) all of these choices.
A consumer possesses five pounds of bananas and values their total utility at $2.14 . If one additional pound is acquired and marginal utility is 11 cents, total utility will
a. rise to $2.25. b. fall to $2.03. c. stay the same. d. fall to $2.11.
Which of the following is true of dummy variables?
A. A dummy variable always takes a value less than 1. B. A dummy variable always takes a value higher than 1. C. A dummy variable takes a value of 0 or 1. D. A dummy variable takes a value of 1 or 10.