In the long run, the perfectly competitive firm
A) does not have a shut down price.
B) earns only a normal profit.
C) may produce even if it suffers a loss.
D) earns an economic profit.
Answer: B
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Classifying a good as rival means
A) that when one person consumes a unit of the good no one else can consume it. B) anyone who does not pay for the good cannot consume it. C) that the good is produced in a competitive market. D) that there is a shortage of the good.
How did McDonalds address the obesity issue in China?
What will be an ideal response?
If the Fed wants to decrease the money supply, it can:
A. Increase the money multiplier. B. Decrease the discount rate. C. Sell government bonds. D. Decrease the minimum reserve ratio.
Which of the following statements is correct?
a. A corporation receives a monetary payment every time its shares of stock are traded by stockholders on organized stock exchanges. b. When a corporation sells bonds as a means of raising funds it is engaging in debt finance. c. A share of stock is an IOU. d. The two most important financial markets in the economy are the stock market and financial intermediaries.