If we observe firms earning zero economic profits in the short run, we know that
A) the industry must be perfectly competitive.
B) the industry must be either perfectly competitive or monopolistically competitive.
C) there must not be any barriers to entry.
D) any market structure is possible since firms under any market structure can earn zero profits at some time.
D
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After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the
A. marginal utility for four pizza slices is negative. B. marginal utility is positive for the fourth slice and negative for the fifth slice. C. marginal utility for the fourth slice is the largest among all slices. D. total utility for five pizza slices is negative.
When average total cost is rising, the marginal cost curve must be above the average total cost curve.
Answer the following statement true (T) or false (F)
An unexpected negative demand shock would lead to a decrease in inventories.
Indicate whether the statement is true or false.
What is the present value of $100 two years from now at an interest rate of 6%?
A) $6 B) $89 C) $94.34 D) $106