The economic profit of a perfectly competitive firm
A) is less than its total revenue.
B) equals its total revenue.
C) is greater than its total revenue.
D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.
A
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Refer to the scenario above. What is Wendy's opportunity cost of producing one greeting card?
A) 0.25 earrings B) 0.5 earrings C) 1 earring D) 2 earrings
Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as
A) cost-of-service regulation. B) rate-of-return regulation. C) service-opportunity regulation. D) natural regulation.
The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2015, the base year, the typical consumer purchased 10 books for $20 each and 200 hamburgers for $1 each. In 2017, the typical consumer purchased 12 books for $23 each and 300 hamburgers for $1.15 each. The consumer price index for 2017 on Planet Econ equals:
A. 1.00 B. 1.45 C. 1.25 D. 1.15
Transfer payments are:
A. spending that transfers resources from the government to individuals. B. when individuals transfer stock ownership in lieu of payment with cash or other liquid assets. C. when individuals transfer cash for payments of a good or service. D. payments that individuals make to the government.