In the long run, competitive firms MUST be profit maximizers because if they do not maximize profits,
A) they will not survive.
B) they will not be price takers.
C) they will attract entry.
D) the profits that they do earn will only cover variable costs.
A
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The recent interventions in Sudan, Yugoslavia, and Libya were all motivated by the need to _______, while Rwanda in 1994 and Syria in 2012 had the same need but lacked such intervention.
Fill in the blank(s) with the appropriate word(s).
According to the quantity theory of money,
a) the quantity of money determines the long run equilibrium price level b) the amount of money in the economy determines the long run quantity of output c) money affects the aggregate supply curve, while the aggregate demand curve determines real output d) the money supply only affects the economy in the long run, not in the short run e) the full-capacity level of output determines the supply of money needed in the economy
If a firm can change market prices by altering its output, then it
A. Has market power. B. Is a price taker. C. Is a competitive firm. D. Faces a horizontal demand curve.
Which of the following is not a typical attribute of a socialist country?
A. Taxes are very high, particularly on the wealthy classes. B. Production is guided by the price system. C. Government owns some of the means of production. D. Cradle-to-grave security for its citizens.