Zero profit in the economic sense means that firms are earning a normal rate of return
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
In monopolistic competition, barriers to entry give the firms the power to set their price
Indicate whether the statement is true or false
The payment received by suppliers of entrepreneurial skills is called rent
Indicate whether the statement is true or false
Refer to Figure 12-5. The firm's manager suggests that the firm's goal should be to maximize average profit. If the firm does this, what is the amount of profit that it will earn?
A) $6,600 B) $6,750 C) $12,150 D) $36,000
Assume the price of beer is $4, the price of pizza is $10 and the consumer's income is $250. Which consumption bundle will NOT be the consumer's choice?
A) A (5 Beers, 5 Pizzas) B) B (0 Beers, 25 Pizzas) C) C (25 Beers, 15 Pizzas) D) None of the above bundles will be chosen.