In short-run perfectly competitive equilibrium, which of the following is alwaystrue?
a. Profit equals zero.
b. Profit can be negative, zero, or positive.
c. Profit can be zero or positive, but not negative.
d. Profit is positive, otherwise firms would not produce.
b
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If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing milk shakes
Indicate whether the statement is true or false
Refer to the figures above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly). P denotes the price of a round of golf and Q is the quantity of rounds sold each day. If the left graph represents the demand during weekdays and the right graph the weekend demand, this profit-maximizing golf course should:
A. charge $7 for each round, regardless of the day of the week. B. charge $7 for each round on weekdays, and $10 during the weekend. C. charge $9 for each round, regardless of the day of the week. D. charge $9 for each round on weekdays, and $10 during the weekend.
The PIH and LCH theories ________ the case for activism, while the procyclical behavior of consumer spending for durable goods ________ the case for activism
A) supports; supports B) supports; does not support C) do not support; does not support D) do not support; supports
If we were to compare the monopolistically competitive firm's long-run outcome to that of a perfectly competitive one, we would conclude that the monopolistically competitive firm:
A. creates less consumer surplus. B. produces more output. C. earns the same profit as a perfectly competitive firm. D. All of these statements are true.