In the short run, if a perfectly competitive firm is producing at a price above average total cost, its economic profit must be:
a. positive.
b. zero.
c. negative.
d. normal.
a
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What economic impact would the closing of a nearby military base have on a town? Would people and businesses that did not directly deal with the military personnel be affected?
What will be an ideal response?
Budgets should be organized along line item budgets rather than program budgets in order to facilitate an evaluation of the effectiveness of government spending on an issue
a. True b. False
The more diversification savers have the:
A. more willing they are to save money, and the more economic growth can occur. B. less willing they are to save money, and the more economic growth can occur. C. more willing they are to save money, and the less economic growth can occur. D. less willing they are to save money, and the less economic growth can occur.
Refer to Figure 23.6 for a perfectly competitive firm. Given the current market price, we expect to see
A. Firms exit from the industry, driving down the market price. B. Firms enter the industry, driving down the market price. C. Firms exit from the industry, driving up the market price. D. No change in the number of firms in the industry and no change in the market price.