If a firm is earning zero economic profit, then its accounting profit will:
A. decrease in the long run.
B. increase in the long run.
C. be positive.
D. be negative.
Answer: C
You might also like to view...
Which of the following should be expected if the tax for a certain good increases?
A. price of the good increases. B. the composition of the commodity bundle is distorted. C. the budget line pivots out. D. the composition of the commodity bundle is distorted and the price of the good increases.
Which would be least likely to cause the production possibilities curve to shift to the right?
a. An increase in the labor force. b. Improved methods of production. c. An increase in the education and training of the labor force. d. A decrease in unemployment.
At point D, the firm is 
A. making money. B. losing money. C. breaking even. D. maximizing its profit.
Who was Adam Smith?
What will be an ideal response?