For a perfectly competitive firm facing the short-run break-even price
A) it has a negative accounting profit.
B) it has an economic profit of zero.
C) it should shut down.
D) it should expand production.
B
You might also like to view...
If bond prices decrease, then the
A. transactions demand for money will decrease. B. interest rate increases. C. interest rate decreases. D. transactions demand for money will increase.
When the price of summer tank tops falls and you buy more of them because they are relatively less expensive, this is called
A) the income effect. B) the deadweight loss effect. C) the elasticity effect. D) the substitution effect.
When a country's ability to maintain its fixed exchange rate is doubted by investors:
A. it may fall under a speculative attack. B. the exchange rate is likely to spiral upward, out of control. C. the value of its currency tends to appreciate too quickly. D. All of these statements are true.
At which interest rate is the present value of $95.40 one year from today equal to $90 today?
a. 4 percent b. 5 percent c. 6 percent d. 7 percent