If entry is limited due to a limited input, firms in that market earn long run economic profit
Indicate whether the statement is true or false
False. The price of the limited input will be bid up until zero economic profits result in the market that uses the input.
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If a community spends more than the amount a categorical grant requires, the effect is _____
a. the same as a general grant b. better than a general grant c. worse than a general grant d. impossible to determine given the available information
In long-run equilibrium, the perfectly competitive firm will
A) go out of business. B) produce to the point at which marginal cost is at its minimum. C) produce to the point at which marginal cost equals average total cost. D) produce on the upward sloping portion of its ATC curve.
Economists refer to pricing the same good at two or more different prices to two or more different consumers as
a. price differentiation b. price discrimination c. price fixing d. price collusion e. unfair pricing
Centrally planned economies are able to cope with environmental pollution issues much better than capitalist countries
a. True b. False Indicate whether the statement is true or false