Which of the following statements concerning equilibrium in the long run is not true?
a. Most firms earn economic profits in the long run.
b. The firm can vary its plant size in the long run.
c. Economic profits are eliminated as new firms enter the industry in the long run.
d. For firms in long-run equilibrium, P = MC = AC.
a
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Individuals who have never been the best at doing anything
A) cannot have a comparative advantage in producing any product. B) perform all tasks at a higher opportunity cost than others. C) can still have a comparative advantage in producing some product. D) must have an absolute advantage in at least ones task.
Whatever else you learned about profit-maximization, you should have learned this: Maximum profit is obtained at the production level where
a. P = AC b. TR = TC c. MR = AR d. MR = MC e. TR = MR
Which of the following is not a necessary characteristic of money?
A. Available in unlimited supply B. Divisible C. Durable D. Difficult to counterfeit
Which of the following could not contribute to differences in wage rates across markets?
a. differences in training and education requirements b. job discrimination c. differences in risk d. problems of labor mobility e. distribution of a new national help-wanted newspaper