Economic profit in the long run is:
A. possible for both a pure monopoly and a pure competitor.
B. possible for a pure monopoly but not for a pure competitor.
C. impossible for both a pure monopolist and a pure competitor.
D. only possible when barriers to entry are nonexistent.
Answer: B
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Capital deepening occurs only when there is an increase in the physical capital per worker in a society
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. Corner solutions always satisfy the tangency condition. B. Interior solutions may or may not satisfy the tangency condition. C. Interior solutions always satisfy the tangency condition. D. Whenever the consumer purchases good X but not good Y, then MRSXY ? PX/PY at the chosen bundle.
The long-run aggregate supply curve is vertical at
A. potential output. B. the actual level of nominal output. C. 100% employment of the labor force. D. the actual level of real output.
Productive efficiency refers to:
A. maximizing profits by producing where MR = MC. B. production, where P = MC. C. setting TR = TC. D. cost minimization, where P = minimum ATC.