Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. The firm will earn zero economic profit _____. ?
a. ?at a price of P3
b. ?at a price between P1 and P2
c. ?at a price of P1
d. ?at a price above P1
e. ?at a price of P2
Answer: e. ?at a price of P2
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Why would an organization as large as the National Football League (NFL) incur large legal expenses to try to prevent bars and restaurants from using their trademarked term "Super Bowl" in their advertising?
What will be an ideal response?
In the ________, one firm sets its output first, and then a second firm, after observing the first firm's output, makes its output decision
A) Cournot model B) model of monopolistic competition C) Bertrand model D) kinked-demand model E) none of the above
If the nominal interest rate is 6.3 percent and the inflation rate is 7.2 percent, then the real interest rate equals:
a. - 13.5 percent. b. + 13.5 percent. c. - 0.9 percent. d. -7.2 percent. e. + 1.1 percent.
Give an historical example of an efficiency wage that was considered by the firm to be "one of the finest cost-cutting moves we ever made."