Which of the following statements about perfect competition is true?
A. In the long run, the entry and exit of firms will generate normal profits for firms.
B. In the short run, firms can only generate economic profits.
C. In the long run, the entry and exit of firms will generate economic profits for firms.
D. In the long run, the entry and exit of firms will generate losses for firms.
Answer: A
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Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS1 and AD1
Suppose there is a persistent reduction in labor force participation, which reduces total planned production at any given price level. The resulting change in the economy's long-run equilibrium position would be represented by a A) movement from B to C. B) movement from C to A. C) movement from A to B. D) movement from A to C.
List the Fed's main policy tools and briefly explain each one
What will be an ideal response?
The reason for the merger of two businesses that sell unrelated goods but can share business practices and sales forces might best be explained by:
A. economies of scale. B. economies of scope. C. learning by doing. D. indivisible costs.
If government purchases increase and net taxes decrease, _____
Fill in the blank(s) with the appropriate word(s).