When a perfectly competitive firm is in long-run equilibrium, economic profits
A) are positive.
B) are zero.
C) are negative.
D) may be positive, zero or negative depending upon costs.
Answer: B
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The ________ are hurt by importing a good
A) domestic consumers of the good B) domestic producers of the good C) domestic governments D) foreign producers of the good E) foreign governments
Although checking deposits are considered money, they are actually
a. fictitious numbers in persons' checkbooks. b. backed by commodities like gold. c. not very useful for making payments. d. bookkeeping entries in bank balance sheets.
If a monopolist's price were $8, it is likely that in equilibrium
A. MC = MR, and both are less than $8. B. MC = MR, and both are more than $8. C. MC = MR, and both are equal to $8. D. None of the choices are correct.
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy is open to trade, and the world price of a car is $6,000, how many cars will be imported?
A. 2,000 B. 6,000 C. 3,000 D. 4,000