To say that a perfectly competitive market is in short-run equilibrium is to say that
a. at least one firm is earning an economic profit
b. at least one firm is earning a normal profit
c. no consumer wishes to buy any more or any fewer units at the market price
d. each firm is earning an economic profit
e. every consumer is purchasing a positive amount of output
C
You might also like to view...
Specialization is the concept of devoting resources to the production of only a small number of goods and services
a. True b. False Indicate whether the statement is true or false
Mr. Capps recently built a dental floss factory in Montana. It cost $500,000 and is expected to last ten years. The plant can only be used to produce dental floss and will have no scrap value. When a recession occurs, the yearly revenue from the plant declines to $35,000 . compared to costs of $25,000 just for the variable resources required to produce the current rate of output. Mr. Capps should
a. shut down since he is experiencing economic losses (in other words, he will not get his $500,000 back). b. reduce the price of dental floss if his demand is inelastic in order to increase his revenue. c. raise the price of dental floss if his demand is elastic in order to increase his revenue. d. continue to operate since he is covering his variable costs and the cost of the plant is a sunk cost.
As long as interest-earning opportunities exist, present dollars are worth
A. More than future dollars. B. Less than inflation-adjusted dollars. C. Less than future dollars. D. More than previous periods' dollars.
A checkable deposit at a commercial bank is a(n):
A. Liability to the depositor and an asset to the bank B. Liability to both the depositor and the bank C. Asset to the depositor and a liability to the bank D. Asset to both the depositor and the bank