Firms in a perfectly competitive industry
A. will earn an economic profit of zero in the long run.
B. will always earn a profit in the short run.
C. may earn either an economic profit or a loss in the long run.
D. will always earn an economic profit in the long run.
A. will earn an economic profit of zero in the long run.
You might also like to view...
Behavioral economics can best be described as
A) the study of situations in which people's choices do not appear to be economically rational. B) the study of human economic behavior. C) the basis for efficient markets. D) the study of how the economy affects human behavior.
The classical dichotomy states that
A) money is superneutral. B) goods markets are separated from labor markets. C) demand is separate from supply. D) real markets determine nominal outcomes, not the reverse.
The aggregate demand curve is Y = 15 - 0.2? when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________
A) autonomous tightening B) automatic adjustment C) autonomous easing D) to increase autonomous spending E) none of the above
Which of the following would tell us that resources are not flowing to their highest valued uses?
A) short-run economic profits B) short-run economic losses C) song-run economic profits D) Some firms are just breaking even.