A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which
A) must be positive.
B) must be either zero or positive.
C) can be positive, negative, or zero.
D) exist at the point at which price equals total cost.
Answer: C
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Your authors say economists tend to
A) think outside the box. B) think outside the bun. C) think outside the mind. D) think outside the theory. E) think outside the facts.
The buying and selling of government securities by the Fed is known as:
a. open market operations. b. federal bond operations. c. treasury bond operations. d. open bonds operations. e. discount rate operations.
The value of future payments is affected by
A. The possibility of nonpayment. B. The par value. C. The level of dividends. D. Capital gains.
The economic functions of the government deal with
A. making sure supply equal demand. B. excess demand. C. promoting economic efficiency. D. discouraging smoking in youths.