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A) economic profits are possible over the long run.
B) economic profits are possible but only over limited amounts of time.
C) economic profits are not possible.
D) the cost of capital will not be covered.
B
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When firms in an economy start producing more computers and fewer televisions, they are answering the ________ part of one of the two big economic questions
A) "when" B) "for whom" C) "what" D) "where"
A merger between firms that compete in the same market is called a:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. monopoly.
The quantity theory of money states that if the velocity of money is stable or at least predictable, then: a. the quantity of money in circulation determines real GDP in the short run
b. the quantity of money in circulation determines aggregate spending. c. the quantity of money in circulation determines both real GDP and the price level in the long run. d. the quantity of money in circulation determines only the price level in the long run. e. the quantity of money in circulation determines the potential output in the long run.
Suppose that each serving of Mac amp; Cheese costs $0.50 to make no matter how many servings are produced. This means that the price elasticity of supply for Mac amp; Cheese is ________ and the supply curve is ________.
A. infinite; perfectly inelastic B. one; perfectly inelastic C. infinite; perfectly elastic D. zero; perfectly elastic