Zero economic profits would most likely exist in which market environment?
A) Pure monopoly
B) Oligopoly
C) Perfect competition
D) Any market structure riddled with uncertainty
E) None of the above.
C
You might also like to view...
A price may be sticky because
A) of monetary policy. B) of menu costs. C) of total factor productivity shocks. D) of the monetary illusion.
Nondiscriminating monopoly is similar to perfect competition in that
a. they have the same level of barriers to entry b. they have a similar number of firms in the industry c. the demand curve facing the firm is perfectly elastic for both d. price equals marginal revenue for both e. price equals average revenue for both
Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will
A. shift outward. B. rotate outward. C. rotate inward. D. shift inward.
When the government raises revenue by printing money, it imposes an "inflation tax" because the:
A. real value of money holdings falls. B. interest rate falls. C. difference between nominal and real interest rates becomes smaller. D. nominal value of money holdings falls.