If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
A. MC = MR > ATC.
B. MC = MR < ATC.
C. MC = ATC > MR.
D. MC = MR = ATC.
Answer: D
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If the Fed has announced that it plans on increasing the interest rate it will
A) engage in contractionary open market operations, thereby decreasing the money supply. B) engage in expansionary open market operations, thereby decreasing the money supply. C) engage in expansionary open market operations, thereby increasing the money supply. D) engage in contractionary open market operations, thereby increasing the money supply.
The above table shows the market shares for all the landscaping services in a suburban area. Which of the following mergers would cause the greatest increase in the four-firm concentration ratio?
A) A and B B) D and E C) E and F D) six of the smallest firms
The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment without inflation is the
a. Keynesian school b. supply-side school c. noninterventionist school d. rational expectations school e. classical school
If a subsidy is provided to produce good X, this will shift the
A. demand curve for X to the right. B. supply curve for X to the left. C. demand curve for X to the left. D. supply curve for X to the right.