For a firm in a perfectly competitive industry
A. short-run economic profits must be zero.
B. both short-run and long-run economic profits may be negative.
C. short-run economic profits may be positive, but long-run economic profits must be zero.
D. short-run and long-run economic profits must be zero.
Answer: C
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Which of the following is true?
a. Advertising on a national scale became a widely accepted practice, but only after the Civil War. b. The first attempts at advertising on more than the local level were directed at consumers rather than retailers. c. By 1920, advertising was a billion-dollar industry. d. Only a and b are correct. e. Only a and c are correct.
If the Fed were to allow unemployment to remain at a higher level than NAIRU:
A. It would lead to deflation. B. the dual mandate would be violated. C. they would fail to maintain full employment. D. All of these statements are true.
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.
Tax incidence is:
A. the difference between what the buyers pay and what the sellers receive in a market where taxes are present. B. the generated revenue that comes from taxes in markets. C. the relative tax burden borne by buyers and sellers. D. the difference between the tax revenue generated and the value of deadweight loss caused by the imposition of the tax.