In the long run, firms in a competitive market make zero economic profit. This induces most firms to leave the industry
Indicate whether the statement is true or false
False. Those firm cannot make themselves better off by moving their resources into another industry because they cover all opportunity cost.
You might also like to view...
? Assume that Figure 4-4 shows demand for soda. An increase in the price of bottled water will change demand from
A. D1to D2. B. D2to D1. C. D3to D2. D. D3to D1.
With each 99 cent iTunes download, GDP
A) rises by 99 cents. B) falls by 99 cents. C) remains unchanged. D) is impossible to measure with this sale because nothing physical has been produced.
In the above table, net exports equal a
A) surplus of $200 billion. B) deficit of $200 billion. C) surplus of $100 billion. D) deficit of $100 billion.
The Shipbreakers of Alang arouse the ire of Greenpeace because of
A) India's non-repentant nuclear stance. B) India's import-competing industrialization policies. C) the difficulty of avoiding ship accidents between Greenpeace's sailboat and the reconstructed Container ships of Alang. D) the large amount of pollution associated with the operations at Alang. E) their competition with capital-intensive industries.