Which of the following is not true in the long run under perfect competition?
a. There is no incentive for firms to enter or exit the industry.
b. Economic profit is zero
c. Long-run marginal cost is minimized.
d. Long-run average total cost is minimized.
c
You might also like to view...
The income approach measures GDP by adding together compensation of employees, proprietors' income, ________
A) net investment, saving, and farmers' income B) net interest, rental income, and corporate profits C) net investment, rental income, and corporate profits D) net saving, investment income, and profits
If Alberto Reyes increases his work hours when his real wage increases, then
A) the substitution effect of the wage increase outweighs the income effect. B) the income effect of the wage increase outweighs the substitution effect. C) leisure is an inferior good to Alberto. D) the substitution effect of the wage increase is completely offset by the income effect.
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
Given the scenario described, if the market price of grills is $300, who participates in the market? A. Only Abe, Butch, and Collin participate. B. Only Collin and Daniel participate. C. Only Abe and Butch participate. D. Only Daniel participates.
Changes in the discount rate are initiated by
a. the Federal Open Market Committee. b. Federal Reserve Banks. c. member banks of the Fed. d. the president of the New York Federal Reserve Bank.