If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.50, which of the following statements is true?
A) The firm should expect the market price of its product to fall.
B) The firm should expect to earn positive economic profit indefinitely.
C) The firm should expect the market price of its product to increase.
D) The firm is earning zero economic profit.
D) The firm is earning zero economic profit.
You might also like to view...
If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial ________ in price and existing firms ________
A) rise; make an economic profit B) rise; incur an economic loss C) fall; make an economic profit D) fall; incur an economic loss
Paul's Plumbing is a small business that employs 12 people. Which of the following is most likely to be a fixed cost for Paul's Plumbing?
a. The tax and insurance payments on the property owned by the firm. b. The wages paid to the 12 employees. c. The payroll taxes on the wages of the 12 employees. d. The salary paid to Paul, who is the manager of the firm.
Which of the following is not considered part of M2?
a. Small time deposits of less than $100,000. b. Money market mutual fund shares. c. Savings deposits. d. Large time deposits of more than $100,000.
Recall the Application. According to the authors, what explained virtually all of the employment gains that occurred nationally?
A) a strong economy B) a weak economy C) increases in unemployment benefits D) decreases in unemployment benefits