Consider the purely competitive firm pictured below. At its short-run equilibrium point, the firm is earning:
A. Zero normal profits
B. Zero economic profits
C. Zero accounting profits
D. We can say nothing about this firm's profit or loss situation
B. Zero economic profits
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In the United States in 2014, over 90 percent of people without health insurance were below the age of 35
Indicate whether the statement is true or false
The basic classical model can account for the procyclical behavior of money if there
A) are real business cycles caused by productivity shocks. B) is reverse causation from future output to money. C) are rational expectations among the public. D) are propagation mechanisms in the economy.
There are several conditions that justify limiting imports to ensure the survival of the "infant industry," and to justify government protection. Which of the following is(are) a justification?
I. Knowledge spillovers should be likely. II. Protected firms should have a good chance of moving down along their average cost curves over time to become competitive at world prices. III. Protected firms should have a good chance to reduce future costs and cause their average cost curves to shift downwards. a. I b. II c. I and III d. I, II, and III
In terms of pricing, which of the following is not true for a monopolist?
A.) In the long-run economic profit is impossible. B.) Marginal revenue is always less then the price charged. C.) If marginal revenue is greater then marginal cost increasing output will increase profits (decrease loss). D.) Maximum profit (minimum loss) occurs where marginal revenue equals marginal cost.