All of the following are true of a perfectly competitive firm in long-run equilibrium except one. Which is the exception?
a. Its economic profit will be zero.
b. Its accounting profit may be positive.
c. It will be minimizing average total cost.
d. It will be charging a price equal to marginal cost.
e. Marginal cost is minimized.
E
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Economists and accountants use the same definition of profit.
Answer the following statement true (T) or false (F)
Which furniture production process would have the highest wage rates?
A. Furniture made by handsaw and hammer B. Furniture made with power equipment C. Furniture with a mix of handmade and automated labor D. Furniture made in an automated furniture factory
When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because:
A. of the law of increasing opportunity costs. B. economic wants are insatiable. C. resources are limited. D. resources are specialized and only imperfectly substitutable.
Which of the following activities are production?
A. moving crude oil from one part of Texas to an oil refinery near the Texas coast B. combining flour, milk, and eggs to make cookies C. taking ice cubes from a tray to put in a drink D. All of these are production.