A purely competitive firm is precluded from making economic profits in the long run because:
A. it is a "price taker."
B. its demand curve is perfectly elastic.
C. of unimpeded entry to the industry.
D. it produces a differentiated product.
Answer: C
You might also like to view...
Labor unions create ________ unemployment at the higher end of the wage ladder
A) frictional B) cyclical C) structural D) under-reported
If a duopolists' collusive price-fixing game can be played repeatedly,
A) one possible equilibrium is that both firms cheat. B) players can signal their willingness to cooperate. C) players can punish cheaters in the following game. D) All of the above answers are correct.
Which of the following would cause the demand for labor to change?
a. c and e. b. A change in the cost of living. c. Changes in the wage rate. d. Movements along the labor demand curve. e. A change in the price of the good produced.
If MPC = 0.8, a $200 billion increase in government purchases would have what size effect on the "first round" of induced added consumption, and what total effect on AD?
a. increase "first round" consumption by $80 billion; increase AD by $400 billion b. increase "first round" consumption by $160 billion; increase AD by $1 trillion c. increase "first round" consumption by $200 billion; increase AD by $1 trillion d. increase "first round" consumption by $800 billion; increase AD by $4 trillion