In the long run, an entrepreneur who owns a perfectly competitive firm will earn no income from that firm
a. True
b. False
B
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Each firm in a cartel has an incentive to chisel because market price exceeds
a. marginal cost. b. average cost. c. average variable cost. d. average fixed cost.
Answer the following questions true (T) or false (F)
1. A complete circular flow of the economy includes both the government sector and the financial markets. 2. Net exports of goods and services is equal to imports minus exports. 3. If personal income is equal to $3,000 and consumers spend $3,600, the level of savings in the economy would $600.
When detailing the impact of monetary policy, a Keynesian econometric model is likely to emphasize the link between
A) interest rates and investment. B) the money supply and inflation. C) velocity and economic growth. D) aggregate supply and the money supply.
In long-run equilibrium, the monopolistically competitive firm:
a. will break even. b. will cease to advertise. c. will earn a positive economic profit. d. will face a perfectly elastic demand curve. e. will no longer need to engage in non-price competition.