A perfectly competitive firm cannot earn an economic profit in the long run because
A. there are no barriers to entry into the industry.
B. it faces a perfectly inelastic demand curve.
C. it is a "price-maker."
D. all firms in the industry earn accounting profits.
Answer: A
You might also like to view...
Are we running out of natural resources?
a. No, because we may abandon the use of a particular resource before we exhaust its supply. b. Yes, because some resources are nonrenewable. c. Yes, because all resources are eventually nonrenewable. d. Yes, because we live in a finite world. e. No, because all resources are in infinite supply.
High military spending has _____ the economic growth of LDCs.
Fill in the blank(s) with the appropriate word(s).
The establishment of well-defined property rights increases:
A. the unemployment rate. B. the amount of pollution. C. average labor productivity. D. the labor force participation rate.
A monopolistic competitor is like a competitive firm in the long run, because
A) it earns positive economic profits. B) it earns zero economic profits C) both firms will earn positive economic profits. D) both firms will increase price to increase profits.