In the short run, a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss
A) might; will never
B) will never; might
C) might; might
D) will never; will never
E) will definitely; will never
C
You might also like to view...
When the price of a good is below the equilibrium price,
A. suppliers are unable to sell as many units as they want; they will cut output and lower prices. B. suppliers can sell as many units as they can produce; they will increase production and raise prices. C. the demand curve shifts down to reach an equilibrium price. D. the supply curve will shift up to reach an equilibrium price.
For a given expected value, the smaller the standard deviation of the expected value, the larger the risk
Indicate whether the statement is true or false
Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold and in a decrease in total spending on illegal drugs by drug users?
a. The interdiction has the effect of shifting the demand curve for illegal drugs to the right. b. The price elasticity of demand for illegal drugs is 1.3. c. The price elasticity of supply for illegal drugs is 0.8. d. As a result of the interdiction, the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 16 percent.
For a particular product, an effective price floor results in
A. quantity demanded equal to quantity supplied. B. quantity supplied greater than quantity demanded. C. demand equal to supply. D. quantity demanded greater than quantity supplied.