Assume that at the current market price, a perfectly competitive firm's profit-maximizing level of output yields total revenues that are just equal to total costs. Which of the following statements applies to this firm?
A) The firm should shut down right now.
B) The firm should continue to operate in the short run to minimize losses, but shut down if things don't improve over the long run.
C) The firm is earning zero economic profit and should continue to operate.
D) The firm should increase its explicit costs to reduce its tax burden.
C
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The form of economic organization in which individuals may own private property but in which the government owns and operates productive resources is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
Which of the following statements about economic growth is true?
What will be an ideal response?
The general approach to obtaining fully robust standard errors and test statistics in the context of panel data is known as _____.
A. confounding B. differencing C. clustering D. attenuating
In the long run, a representative firm in a monopolistically competitive industry will typically:
A. earn a normal profit, but not an economic profit. B. produce a level of output at which marginal cost and price are equal. C. have an elasticity of demand that will be less than it was in the short run. D. have a larger number of competitors than it will in the short run.