A perfectly competitive firm that earns a normal profit in the long run actually earns zero economic profit
a. True
b. False
Indicate whether the statement is true or false
True
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Define the following terms and explain their importance to the study of economics. a. marginal cost b. marginal revenue c. short-run equilibrium d. supply curve of the firm e. economic profit
What will be an ideal response?
Firms use collective bargaining to set higher market prices for their products
a. True b. False Indicate whether the statement is true or false
Three difficulties that limit the usefulness of ownership in resolving incentive problems are:
A. wealth constraints, risk aversion, and free-riding. B. wealth constraints, risk aversion, and bundling. C. risk aversion, free-riding, and conflict of interests. D. wealth constraints, free-riding, and bundling.
The supply curve for the monopolist
a. is horizontal. b. is vertical. c. is upward sloping. d. does not exist.