The marginal firm in a competitive market will earn zero economic profit in the long run
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the production possibilities frontier in the figure above. If the country moves from point a to point c, the opportunity cost of the move is
A) 30 million capital goods. B) 20 million capital goods. C) 10 million capital goods. D) 10 million consumption goods.
Money will fail to serve as a medium of exchange if it ceases to be a store of value
Indicate whether the statement is true or false
Determining the optimal choice of input combinations generally does not involve
A. substitution of one input for another. B. fixing the level of technology in the long run. C. minimizing cost, given the prices of inputs. D. assessing the productivity of various inputs.
Dollar bills in the modern economy serve as money because
A) they are backed by the gold stored in Fort Knox. B) they can be redeemed for gold by the central bank. C) they have value as a commodity independent of their use as money. D) people have confidence that others will accept them as money.