The fact that a firm is a price-setter does not ensure it will make a positive economic profit in the short run and over time
Indicate whether the statement is true or false
TRUE
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In the long run, there is
A) a tradeoff between unemployment and inflation. B) a tradeoff between unemployment and natural unemployment. C) a tradeoff between unemployment and real GDP. D) no tradeoff between unemployment and inflation. E) no tradeoff between fiscal policy and monetary policy.
Generally speaking, firms _____ of their capital assets
a. prefer straight-line depreciation b. prefer accelerated depreciation c. are indifferent between straight-line and accelerated depreciation d. prefer not to depreciate
For which of the following types of firm does the average revenue curve coincide with the marginal revenue curve?
a. A monopolist b. An oligopoly firm c. A monopolistically competitive firm d. A perfectly competitive firm e. A monopsonist
Which of the following is a reason why a country barely at subsistence levels cannot achieve growth very easily?
a. It cannot decrease capital goods in order to increase consumption goods. b. The lower income means that Say's law does not apply here. c. Too much savings exist and therefore it remains underutilized. d. It cannot decrease consumption goods in order to increase capital goods. e. It cannot decrease capital goods in order to also decrease consumption goods.