Which of the following is consistent with farming as a competitive market?
A. Zero economic profit in the long run.
B. Negative economic profit in the long run.
C. A large percentage of costs are for advertising.
D. Positive economic profit in the long run.
Answer: A
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Ultimately, short-run supply curves are upward sloping because of
a. the irrelevance of fixed costs to the firm's decision making. b. the factor-price effect. c. diminishing marginal returns to the variable inputs. d. the equality of demand and marginal revenue for competitive firms.
The wage rate paid by Walkman producers falls and at the same time the price of raw materials used in the production of Walkmans rises. You predict that the supply curve of Walkmans will
A) shift either leftward or rightward. B) surely shift rightward. C) surely shift leftward. D) surely become steeper.
The primary source of funds for finance companies is ________
A) commercial paper B) deposits C) securities D) the central bank
What distinguishes public goods from private goods?