A perfectly competitive firm can continue to earn above-normal profit in the long run
a. if it has a continued technical advantage over other firms in the market and it is able to keep that advantage a secret
b. if it has employees that are substantially more efficient than other firms' workers
c. if its centralized location reduces its transportation costs below those of other firms
d. if it has easier access to necessary raw materials
e. under no circumstances
A
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Assume that production from a automobile manufacturer caused acid rain. If the government imposed a tax on the manufacturer equal to the cost of the acid rain, the government's action would
A) externalize the externality. B) eliminate all acid rain. C) force the manufacturer to move production to another location. D) internalize the externality.
A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which year's GDP should it be counted?
A) Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP. B) The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP. C) 2017 D) 2016
There are many cattle ranchers in the world, and there are also many McDonald's restaurants in the world. Why, then, does a McDonald's restaurant face a downward-sloping demand curve while a cattle rancher faces a horizontal demand curve?
What will be an ideal response?
How does a competitive firm's demand for labor react to a specific tax on each unit of output it sells?
What will be an ideal response?