When a firm earns economic profit
A) accounting profits are zero.
B) market share has be capitalized.
C) other firms enter the market.
D) total revenue has been maximized.
C
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Refer to the figure above. What is the equilibrium employment when the labor demand curve is LD2 and the labor supply curve is LS2?
A) 10 units B) 20 units C) 5 units D) 15 units
In an economy with perfect capital mobility, if domestic interest rates are above world interest rates then
a. capital outflows will drive domestic interest rates down. b. capital inflows will drive domestic interest rates down. c. current account deficits will drive domestic interest rates down. d. the central bank will have to intervene even if exchange rates are floating.
Of the in-kind programs, food stamps have the highest total annual cost
Indicate whether the statement is true or false
Which term refers to the profits that a firm receives from investing in a new technology?
a. Private benefits b. Social benefits c. Private externalities d. Positive externalities