Which of the characteristics of perfect competition assures that economic profit will be zero in the long run?
a. Each firm is small relative to the market.
b. Each firm has access to perfect information.
c. Goods produced in the market are homogeneous.
d. Each firm is a price taker.
e. There is easy entry and exit in the market.
E
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What are the effects of an expansionary monetary policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
A change in the price of a good will shift the indifference curves
a. True b. False Indicate whether the statement is true or false
Mary says, "You would have to pay me $50 to attend that pro wrestling event." For Mary, the marginal utility of the event is:
A. zero. B. positive, but declines rapidly. C. negative. D. positive, but less than the ticket price.
If a nation has “cheap labor,”
A. it can still benefit from trade. B. other nations can still compete with it. C. it cannot have a comparative advantage in everything. D. All of the above are true.