When a firm is earning positive economic profits, this is an indication that the firm
A. Is producing at the minimum ATC.
B. Is using its resources in one of a number of ways that would yield positive economic profits.
C. Should leave this market in the long run.
D. Is using its resources in the best possible way.
Answer: D
You might also like to view...
Government purchases in national income accounts would include payments for ________.
A. unemployment benefits B. salaries for current U.S. military officers C. public assistance for welfare recipients D. Social Security checks to retirees
A collective consumption good may be inefficiently produced by the private sector because _____
a. it is inefficient to raise price above marginal cost b. of free riding problems c. fixed costs are too high d. private producers are greedy
People prefer to hold less of their wealth in the form of financial assets like bonds and term deposits when: a. real GDP is at an all-time low
b. the real interest rate is above 10 percent. c. the price level is very low. d. the nominal interest rate is close to zero. e. the nominal interest rate is very high.
The market demand curve in an oligopolistic market is downward sloping
a. True b. False Indicate whether the statement is true or false