One difference between the short run and the long run is that perfectly competitive firms:
A. always earn positive economic profit in the short run, but never in the long run.
B. can earn positive, negative, or zero economic profit in the short run, but will earn zero economic profit in the long run.
C. earn zero economic profit in the short run, but will earn positive economic profit in the long run.
D. always earn more economic profit in the long run.
Answer: B
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Assuming that good "x" is measured on the x-axis and good "y" is measured on the y-axis, if the utility for the two goods "x" and "y" can be measured as U = x, then it can be concluded that
A) "x" and "y" are perfect complements. B) "y" is a "bad". C) the indifference curves on the x,y graph are upward sloping. D) the indifference curves on the x,y graph are vertical.
The issue of fairness versus efficiency arises
A. only in a command economy. B. only in a market economy. C. in neither a command nor a market economy. D. in both a command and a market economy.
A perfectly elastic, long-run market supply curve is most likely to be achieved in
a. a price-taker industry. b. a constant cost industry. c. an increasing cost industry. d. a price searcher industry.
Which political philosophy argues that the government should choose policies to maximize the total utility of everyone in society?