In the long run, neither competitive price takers nor competitive price searchers will be able to earn economic profits because
a. entry barriers into these markets are high, raising the costs of each firm.
b. the government will dictate moderate prices for these firms.
c. competition will force prices down to the level of per-unit production costs.
d. marginal revenue is always less than marginal cost when barriers to entry are low.
C
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Indicate whether the statement is true or false
A typical IMF stabilization package involves
(a) erecting barriers against foreign investment. (b) overvaluing the exchange rate. (c) liberalization of exchange controls. (d) a reduction in interest rates. (e) all of the above.
The optimal size of a club that shares a public good _____
a. gets smaller if external costs decline b. gets larger if external costs decline c. gets smaller if congestion costs decline d. gets larger if congestion costs decline
According to the text, today's Lorenz curve is
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