Which of the following is characteristic of a perfectly competitive market?
A. Exit of small firms when profits are high for large firms.
B. Marginal revenue lower than price for each firm.
C. Zero economic profit in the long run.
D. A small number of firms.
Answer: C
You might also like to view...
The Fisherian version of the quantity theory equation is a. MV = Py. b y = c + i + g
c. M = kPy. d. s = i + (g – t).
Which of the following statements is correct?
a. Assuming that explicit costs are positive, economic profit is greater than accounting profit. b. Assuming that implicit costs are positive, accounting profit is greater than economic profit. c. Assuming that explicit costs are positive, accounting profit is equal to economic profit. d. Assuming that implicit costs are positive, economic profit is positive.
When a U.S. firm engages in outsourcing, it benefits ________ and harms ________.
A. the U.S. consumers of the firm's products; the firm's foreign employees B. the firm; the U.S. consumers of the firm's products C. the U.S. consumers of the firm's products; the firm's U.S. employees D. the U.S. consumers of the firm's products; the firm
Explain the difference between GDP and GNP
What will be an ideal response?