When a firm is at its short-run break-even point
A) economic profits are positive.
B) economic profits equal zero and the firm should shut down.
C) economic profits equal zero and the firm is earning a nominal rate of return on investment.
D) economic profits are negative but the firm should continue to produce because accounting profits are positive.
C
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An increase in demand will increase the quantity sold but not the price in a market if:
a. supply is perfectly elastic b. supply is perfectly inelastic c. supply is relatively elastic d. supply is relatively inelastic
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, Mark Bils and Peter Klenow's findings were:
A. different from Anil Kashyap's findings. They found prices changing more frequently. B. different from Anil Kashyap's findings. They found prices changing less frequently. C. similar to Anil Kashyap's findings. They found prices changing very frequently. D. similar to Anil Kashyap's findings. They found prices changing very infrequently.
Refer to the diagram. Rent controls are best illustrated by:
A. price A.
B. quantity E.
C. price C.
D. price B.
The graph below represents the supply and demand for labor in a purely competitive market. The price of labor that an individual firm in this market would take as given is:
A. 0a
B. 0c
C. Higher than 0a
D. Higher than 0c