The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run
Indicate whether the statement is true or false
FALSE
You might also like to view...
In the above figure, at a price of $8, a perfectly competitive firm produces ________ and it ________
A) 0; incurs an economic loss B) 0; makes zero economic profit C) some output; makes zero economic profit D) some output; makes an economic profit
A good or service that is forgone by choosing one alternative over another is called a(n):
a. explicit cost. b. opportunity cost. c. historical cost. d. accounting cost.
If the MRP of labor is below the wage rate, the firm should lay off workers
a. True b. False Indicate whether the statement is true or false
An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.
a. lowers; rise b. lowers; fall c. raises; rise d. raises; fall