If a perfectly competitive firm is currently producing where ________, then the firm will earn zero profits.
A. P = MC and MC = ATC
B. P < MC and MC > ATC
C. P = MC and MC < ATC
D. P > MC and MC = ATC
Answer: A
Economics
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Everything else equal, if the dollar depreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will import more from the U.S. and will export less to the U.S. C) China will export more to the U.S. and will import less from the U.S. D) the Chinese government will buy yuan from the foreign exchange market.
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What is meant by the term "outside lags"?
What will be an ideal response?
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What is the substitution effect?
What will be an ideal response?
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Which of the following provides a longer run measure of the exchange rate?
a. purchasing power parity (PPP) b. exchange rate c. GDP per capita d. GDP
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