Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm experience zero economic profit?
a. perfect competition only
b. perfect competition and monopolistic competition only
c. perfect competition, monopolistic competition, and monopoly
d. The answer cannot be determined without knowing whether the market is in the long run or short run.
d
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Refer to Labor Demand and Labor Supply. Suppose firms in the industry earn zero profit. The total rental payment made to the industry's capital is measured by
a. area A.
b. area B.
c. area A + B.
d. area B + C.
If the Fed buys $100,000 in U.S. government securities from a commercial bank, the bank now has an additional $100,000 of
A) total assets. B) excess reserves. C) actual reserves. D) net worth.
Describe the primary functions of the World Bank, the IMF, and the WTO. When was each of these organizations formed?
What will be an ideal response?
An externality exists when
A. there are opportunity costs. B. there are internal costs. C. there are private costs. D. there are external costs.