In long-run competitive equilibrium it is possible for firm owners to
A. earn both rent and economic profit.
B. earn rent but not economic profit.
C. earn both economic profit and rent.
D. both b and c
E. both a and c
Answer: D
You might also like to view...
In the above figure, if the price is equal to $50, there is
A) a surplus of 200 units. B) a shortage of 100 units. C) an excess quantity demanded of 50 units. D) an inadequate supply of 100 units.
What is the four-firm market share (C4) in this market?
a. 0.5 b. 0.6 c. 0.7 d. 0.8
An economy with no government and no foreign trade tends to move toward equilibrium GDP because at output levels greater than equilibrium GDP, inventories are
A. Increasing, and actual investment is less than desired investment. B. Decreasing, and actual investment is less than desired investment. C. Increasing, and actual investment exceeds desired investment. D. Decreasing, and actual investment exceeds desired investment.
Which of the following is a condition that helps enforce a cartel agreement?
A) a large number of firms B) relatively differentiated products C) easily observable prices D) large variation in prices