In the long run in a perfectly competitive market:
A. firms earn positive economic profits.
B. firms operate at an efficient scale.
C. supply is perfectly inelastic when all firms have the same cost structure.
D. All of these are true.
B. firms operate at an efficient scale.
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Trade requires:
A. governments to get together and agree on who is going to specialize in what. B. governments employ an economic planner to find comparative advantage for different products. C. that day-to-day business decision making is carried out almost entirely by firms and individuals, not by governments. D. firms and individuals to follow government mandates about what to trade.
According to the permanent income hypothesis, when income rises above the permanent income level, the household saves at a lower rate than the long-run MPS
a. True b. False Indicate whether the statement is true or false
A firm operating in a perfectly competitive market earns zero economic profit in the long run but remains in business because the firm's revenues cover the business owners' opportunity costs
a. True b. False Indicate whether the statement is true or false
Which of the following would a macroeconomist consider as investment?
a. Marisa purchases a bond issued by Proctor and Gamble Corp. b. Karlee purchases stock issued by Texas Instruments, Inc. c. Charlie builds a new coffee shop. d. All of the above are correct.