Under perfect competition, a business firm can accept losses:
a. only in the short run.
b. only for 1 year.
c. only in the long run.
d. no longer than 10 years.
e. never.
a
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9
A) too many consumers want to buy pecans. B) economic surplus is maximized. C) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. D) the quantity supplied is greater than the economically efficient quantity.
The above figure shows the market for apples. If the government restricts output to no more than 300 pounds, then
A) 300 pounds of apples will be sold at $3. B) 200 pounds of apples will be sold at $3. C) no apples will be sold. D) None of the above.
Schooling and other types of training
a. are regarded as investment in human capital. b. are an important cause of income differentials. c. involve workers' sacrificing current income in order to enjoy higher future income. d. All of the above are correct.
In the figure, when the price falls from $30 to $25, consumer surplus ________ for a total consumer surplus of ________
A) increases by $15; $64 B) increases by $5; $54 C) decreases by $15; $34 D) increases by $25; $74