?If a firm is producing at an output level where the total revenue curve intersects the total cost curve, which of the following is true of the firm?
a. ?Its profit is zero.
b. ?Its cost is maximized.
c. ?Its cost is minimized.
d. ?Its revenue is maximized.
e. ?Its profit is maximized.
Ans: a. ?Its profit is zero.
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Which of the following statements is true of creative destruction?
A) Creative destruction is encouraged in economies with extractive institutions. B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800. C) Creative destruction is generally bad for an economy. D) Creative destruction creates losses for some economic agents and benefits for others.
The entry of firms into a perfectly competitive industry causes the supply curve to
A. increase its slope. B. decrease its slope. C. move toward the right. D. move toward the left.
What role do losses play in a competitive market
What will be an ideal response?
A monopsony exists when
A. there is a single seller with no rivals in an input market. B. there is a labor union controlling labor supply in a labor market. C. there is a single buyer with no rivals in an input market. D. employers in a labor market face a horizontal labor supply curve.