If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?
Because a normal rate of return on their investment is included as part of the opportunity cost of production.
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"The plan to create private accounts in Social Security will reduce benefits for some workers," is an example of a ________ statement, while "Social Security will be better if the private accounts are allowed" is an example of a ________ statement.
A. structural policy; fiscal policy B. normative; positive C. positive; normative D. monetary policy; fiscal policy
When two goods have negative cross elasticities of demand and negative income elasticities, they are: a. Normal and substitutes
b. Normal and complements. c. Inferior and substitutes. d. Inferior and complements.
Labor income's share in an advanced country is likely to be
A) 70%. B) 45%. C) 29%. D) 10%. E) none of the above
A monopoly's marginal revenue is equal to the market price of its product
Indicate whether the statement is true or false