Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand is D0:
A. the firm will raise the price above P0 to increase profit.
B. this market is in short-run equilibrium but not long-run equilibrium.
C. this market is in long-run equilibrium because the firm is earning zero economic profit.
D. this market is in long-run equilibrium because the firm is earning positive economic profit.
Answer: C
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An individual's quantity of money demanded
a. refers to how much money the individual would like to have b. refers to the amount of money an individual needs to maintain her desired standard of living c. refers to her wealth constraint d. refers to the amount of her wealth that an individual chooses to hold in the form of money e. is virtually unlimited
Figure 3-6
In , suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?
a.
an increase in the price of sugar, an ingredient used to produce ice cream
b.
a decrease in the price of frozen yogurt, a substitute for ice cream
c.
abnormally hot weather that temporarily increases consumer desire for ice cream
d.
a decrease in the price of milk, an ingredient used to produce ice cream
If you have a checking account at Citibank, the account is a liability of the bank.
Answer the following statement true (T) or false (F)
Antitrust laws are enforced by:
A. the Department of Commerce. B. the Federal Trade Commission. C. the Federal Reserve. D. the Department of Labor.