In a perfectly competitive market, transient economic profit can be earned by
a. the firms that hire the most employees
b. the last firm to enter the market
c. those firms that supply low-income neighborhoods
d. the first firm to adopt a new technological advance
e. those firms that use the most capital-intensive methods of production
D
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Consider an unregulated monopoly in Figure 13.2. If we look at the firm's long-run average cost, the firm is exhibiting:
A. diseconomies of scale. B. diminishing returns. C. economies of scale. D. increasing returns.
A tax levied on the purchase of a specific good or service is
A. a purchase tax. B. a value tax. C. an excise tax. D. a consumption tax.
Other things the same, what happens in the short run to the price level and quantity of output when the aggregate demand curve shifts to the left?
The logic of the wealth effect begins with a change in the price level changing the interest rate.
a. true b. false