In the long run, perfectly competitive firms earn zero economic profit; this means that each firm is
a. always trying to move into a more profitable market.
b. content to stay in its market.
c. always facing new entrants to its market.
d. earning negative accounting profit.
B
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Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the
exchange rate. A) fundamental disequilibrium; revaluation B) fundamental disequilibrium; devaluation C) fundamental overvaluation; revaluation D) fundamental overvaluation; devaluation
What are Medicaid and Medicare?
What will be an ideal response?
If the Fed buys a $1,000 U.S. government bond from a bank, it pays for it by giving the bank $1,000 in reserves—reserves that it simply creates out of thin air
a. True b. False Indicate whether the statement is true or false
According to the "misperception effect" explanation of short-run aggregate supply, firms increase output as the price level rises because they mistake the increase in overall prices for an increase in the relative price of their own output
a. True b. False Indicate whether the statement is true or false