In long-run equilibrium in perfect competition, the entry and exit of firms will drive economic profits to zero
a. True
b. False
Indicate whether the statement is true or false
True
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An excise tax on imported items is known as a(n)
A. price ceiling. B. quota. C. export restriction. D. tariff.
The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of
A) $7.15 per hour. B) $8.50 per hour. C) $9.00 per hour. D) $7.65 per hour. E) $8.00 per hour.
The accelerator theory can explain the paradox that both interest rates and investment rise and fall in concert during the business cycle if
A) the effect of changes in Y effect on In dominate the effect of interest rates on investment. B) the LM curve is constant. C) the IS curve is constant. D) the effect of changes in interest rates on In dominate the effect of changes in Y on In.
State any two properties of the perfectly competitive market