Which of the following is true for a perfectly competitive market in short-run equilibrium?
A. The quantity supplied equals the quantity demanded.
B. The typical firm earns zero economic profit.
C. The typical firm will always make a positive profit.
D. All of these are correct.
Answer: A
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A) the principle of opportunity cost. B) the principle of voluntary exchange. C) the marginal principle. D) the principle of diminishing returns.
Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it offers incentives such as discounts, cash rebates, or lease incentives to customers? How might a car company decide which of these strategies to use
What will be an ideal response?
An improvement in production technology will
a. increase a firm's costs and increase its supply. b. increase a firm's costs and decrease its supply. c. decrease a firm's costs and increase its supply. d. decrease a firm's costs and decrease its supply.
The Phillips curve implies a trade-off between interest rates and unemployment.
Answer the following statement true (T) or false (F)