The firm illustrated above is
A) earning an economic profit of $400,000 per month.
B) earning an economic profit of $2,000,000 per month.
C) earning an economic profit of $1,600,000 per month.
D) incurring an economic loss of $400,000 per month.
E) incurring an economic loss of $1,600,000 per month.
D
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According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment
A) below; upward B) below; downward C) above; upward D) above; downward
In international trade, one country's gain is another country's loss
a. True b. False Indicate whether the statement is true or false
Perfect competition has all of the following features except
a. large number of firms b. goods that are perfect substitutes c. no barriers to entry d. brand loyalty e. firm has insignificant market share
One of the basic principles of economics is that markets are usually a good way to organize economic activity. This principle is explained by the study of
a. factor markets. b. energy markets. c. welfare economics. d. labor economics.