In the long run, zero economic profit exists in monopolistic competition and perfect competition.
Answer the following statement true (T) or false (F)
True
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If the elasticity of supply of a good is zero, then its
A) supply curve is vertical. B) supply curve is horizontal. C) demand curve must be vertical. D) supply curve is positively sloped.
A decrease in population can be expected to
a. raise land rent b. increase the supply of land c. decrease the demand for land d. increase the demand for land e. decrease the supply of land
Which of the following is not a characteristic of a gold standard?
A. Currency convertibility into gold B. Discretionary or activist monetary policy C. Unlimited international gold flows D. Exchange rate stability
With average cost pricing, the monopolist
A) earns no accounting profit. B) produces where P = MC. C) earns a normal rate of return for its shareholders. D) does not cover opportunity costs.