In the long run
A. all firms must make economic profits.
B. a firm can vary all inputs, but it cannot change the mix of inputs it uses.
C. there are no fixed factors of production.
D. a firm can shut down, but it cannot exit the industry.
Answer: C
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The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is
A) zero. B) $8,000 per student. C) $4,000 per student. D) $12,000 per student.
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