If a perfectly competitive firm is currently producing where P = MC and MC = ATC, then the firm will earn ________ profits.
A. above normal
B. negative
C. positive
D. zero
Answer: D
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Moving along the short-run Phillips curve, if ________ increases, then ________ decreases
A) unemployment; the price level B) inflation; real GDP C) inflation; unemployment D) unemployment; the expected inflation rate E) inflation; the price level
Which of the following changes would cause American net exports to decrease?
A) A decrease in the real value of the dollar B) A decrease in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods
The Keynesian labor supply function is shown as
a. Ns = g(W/P). b. Ns = g(P/W). c. Ns = t(W/Pe). d. Ns = t(Pe/W).
Traditionally, the Federal Reserve can give emergency loans only to:
Commercial banks Manufacturing firms Securities firms Investment banks