If long-run equilibrium is present in a competitive market, the typical firm in the market will be
a. making economic losses.
b. making zero economic profit.
c. making economic profit.
d. making a rate of return that is higher than the rate earned in other industries.
e. both c and d are correct.
B
You might also like to view...
Someone who is risk-averse is likely to:
A. buy a government bond instead of a stock. B. invest in a start-up company instead of putting her money under her mattress. C. buy company stock instead of putting money in a savings account. D. All of these statements are true.
In a voluntary contribution game:
A. each member of a group makes a contribution to a common pool which benefits only the contributor, and this leads to alignment of individual and collective interests. B. each member of a group makes a contribution to a common pool which benefits everyone, and this leads to alignment of individual and collective interests. C. each member of a group makes a contribution to a common pool which benefits only the contributor, and this leads to a conflict between individual and collective interests. D. each member of a group makes a contribution to a common pool which benefits everyone, and this leads to a conflict between individual and collective interests.
Goods produced that go into inventories are
a. not counted in GDP. b. only counted in GDP when they are ultimately sold. c. counted in GDP even though they are not sold. d. counted if they completely depreciate within the calendar year.
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
a. less than $0.50. b. $0.50. c. between $0.50 and $1. d. $1.