When resources are earning zero economic profits for a firm, the resources could earn more in their next best alternative use.
Answer the following statement true (T) or false (F)
False
When firms are earning zero economic profits, they are making as much as they could using their resources in their next best alternative.
You might also like to view...
An export subsidy will cause the terms of trade of the ________ country to ________ and will ________ the country
A) exporting; suffer; harm B) exporting; improve; benefit C) importing; suffer; harm D) importing; suffer; benefit E) importing; improve; harm
Refer to the payoff matrix below, which ________ a prisoner's dilemma. If both countries go it alone, Home will choose Policy ________ and Foreign will choose Policy ________
A) is; 1; A B) is; 2; B C) is; 1; B D) is not; 2; B E) is not; 1; A
Refer to the table below. If at the current advertising level, A = $9,800, B = $15,000, and C = $8,200, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the television and increase its advertising in newspapers.
B) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
C) The firm should decrease its advertising on the radio and decrease its advertising in newspapers.
D) The firm should increase its advertising on the television and decrease its advertising in newspapers.
An economic agreement between countries to allow free trade between members, a common external trade policy, and coordinated monetary and fiscal policies is called
a. an economic union. b. a common market. c. a trade forum. d. a free trade agreement.