In long run equilibrium, a perfectly competitive firm:
a. can earn positive economic profits.
b. earns zero economic profits
c. can earn negative economic profits.
d. can do any of the above.
b
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The standard deviation around an expected value is a useful measure of
A) expected value of an asset. B) economic value of an asset. C) the difference between the best-case return of an asset and its worst-case return. D) deviation of an asset's actual returns from its expected returns.
In game theory, a strategy that is optimal no matter what your opponent does is called a dominant strategy
a. True b. False Indicate whether the statement is true or false
If supply is unchanged, a decrease in the demand for tacos will cause the equilibrium price to:
A.) Rise and equilibrium quantity to fall. B.) Rise and equilibrium quantity to rise. C.) Fall and equilibrium quantity to rise. D.) Fall and equilibrium quantity to fall.
Which theorem tells us that no voting system is perfect?
A. Bowman's problematic theorem B. Arrow's impossibility theorem C. Condorcet paradox D. Median-voter theorem