It is more profitable for a firm to be_______ than ________
a. In perfect competition; monopolists
b. A monopolists; in perfect competition
c. Not in business; in business
d. All of the above
b
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Typically a firm's economic profit will be
A) greater than its accounting profit. B) less than its accounting profit. C) equal to its accounting profit. D) equal to its accounting profit minus its tax liability. E) equal to its accounting profit plus the market value of any unsold inventory.
An increase in the price of wheat futures will tend to cause
A) a decrease in current wheat consumption. B) an increase in short-selling of wheat. C) a shortage of wheat in the future. D) a surplus of wheat in the future.
In pure competition:
a. the optimal price-output solution occurs at the point where marginal revenue is equal to price b. a firm's demand curve is represented by a horizontal line c. a firm is a price-taker since the products of every producer are perfect substitutes for the products of every other producer d. a and b only e. a, b, and c
Which of the following transactions represents a deficit in the current account of the US balance of payments?
a) the moscow capital investment corporation makes a loan to a US firm b) a US subsidiary exports raw materials to its french parent company c) US firms and individuals receive dividends on US investments in latin america d) US tourists in great britain purchase pounds sterling e) foreigners purchase US securities