In the long-run equilibrium, perfectly competitive firms make zero economic profit because of
A) government regulations.
B) the ability of firms to enter and exit.
C) inefficient production processes.
D) high fixed costs.
B
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Hyperinflation can be caused by
A) the central bank selling bonds to the government. B) the government selling bonds to the public. C) the central bank selling bonds to the public. D) the government selling bonds to the central bank.
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the long run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week b. Shut-down as price is lower than average cost c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
Which of the following correctly describes the concept of free riding?
a. Making a public good available to all for no cost b. Using a public good but leaving it to others to pay for it c. Encouraging the use of city buses by not charging one day per week d. Using a public good without preventing others from using it
Worker mobility and transition aid to workers are two ways to offset some of the impacts of:
A. increase in labor demand. B. increases in the labor supply. C. the long-term increase in real wages. D. increasing wage inequality.