A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
A. its total revenues would be positive.
B. accounting profit would be negative.
C. revenue is equal to all costs, including the opportunity cost of capital and labor.
D. its fixed costs would prevent it from leaving the industry.
Answer: C
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The firm would have a better bargaining position if
a. The firm can easily replace the workers with machinery b. The workers are a critical part of the production process c. The workers are highly specialized and would not find employment elsewhere easily d. Both A&C
What is causing South Africa’s youth unemployment problem?
a. Inability to devalue its currency b. High number of laws restricting hiring and firing c. High current account deficit d. Youth lack necessary work skills.
When unwanted inventories pile up in retail stores, retail managers will take actions that lead to greater
A. Wages. B. Economic growth. C. Inflation. D. Unemployment.
If market price is above equilibrium price,
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater than quantity demanded. C. quantity supplied is equal to quantity demanded.