In the long run, a perfectly competitive firm will
A) be able to make an economic profit.
B) produce but incur an economic loss.
C) make zero economic profit.
D) not produce and will incur an economic loss equal to its total fixed cost.
E) not produce but not incur an economic loss.
C
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Which of the following is true within exchange economies:
A. All efficient allocations lie in the set of core allocations. B. All core allocations are efficient. C. The set of efficient allocations can be defined without knowing individual endowments. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above are true. H. None of the above are true.
If prices are held below the equilibrium price:
A) there exists a surplus in the market. B) there exists a shortage in the market. C) social surplus is maximized. D) all firms earn positive economic profits.
In many countries, laws regarding firing and hiring mainly affect businesses with 50 or more workers. What effect has this had on the businesses?
a. More businesses have 49 or fewer workers. b. Fewer businesses have 49 or fewer workers. c. It has no effect on employment decisions. d. Businesses grow faster to lower the costs of these laws.
On January 1, 2006, a consumer borrowed $10,000 for a term of one year at an interest rate of 12 percent. How much principal and interest will the consumer pay back on January 1, 2007?
a. $10,000 b. $1,200 c. $8,929 d. $11,200