If marginal revenue equals marginal cost in the short run, the perfectly competitive firm earns zero profits
a. True
b. False
Indicate whether the statement is true or false
False
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Between 1821 and 1930, the U.S. gained a comparative advantage in the production of agricultural goods
Indicate whether the statement is true or false
MegaCable and Acme are competing for an exclusive contract to provide the city of Dustin with cable television for the next year. The firm that wins the contract will earn an economic profit of $5 million. The contact will be awarded to the firm that spends the most on lobbying. If both firms spend the same amount on lobbying, then the winner will be determined by a coin flip, so each will have a 50 percent chance of winning. The socially optimal amount for each firm to spend on lobbying is ________.
A. $5,000,000 B. $2,500,000 C. $0 D. $10,000,000
Modern, highly productive economies
A. have no specialization. B. have a small degree of specialization. C. have a high degree of specialization.
Which of the following will cause a rightward shift of the demand curve?
A) a decrease in the cost of production B) a decrease in the price of the good C) an increase in the expected future price of the good D) all of the above