In a perfectly competitive market, all firms in the long run earn:
A) positive economic profit.
B) positive accounting profit.
C) zero economic profit.
D) zero accounting profit.
C
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All of the following are true regarding cartels except which one?
A) They are stable. B) They create a deadweight loss. C) They are illegal. D) They set the price higher than the competitive price.
Which of the following is a characteristic of a monopoly firm?
A) horizontal individual demand curve B) barriers to entry C) easy entry and exit D) many buyers and sellers
The invention of the Internet should make poorer countries
A. poorer due to the expense of new technology. B. poorer because the Internet is primarily in richer countries. C. richer because technology adoption is easier. D. richer because they can distribute information without costs.
In a price system, changes in prices
A) make it difficult for the system to function well. B) imply that people have made mistakes in the past. C) signal to everyone in the system what goods are relatively more or less scarce. D) signal to policy makers what goods should and should not be taxed more.