If a competitive firm is in short-run equilibrium, then
A) profits equal zero.
B) economic profits will be positive.
C) economic profits will be negative.
D) All of the above are possible in the short run.
D
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Which of the following labor demand curves will be the least elastic?
A. The long-run demand for labor for an elastic product B. The short-run demand for labor of a firm with L-shaped Isoquants C. The short-run demand for labor for an inelastic product D. The long-run demand for labor for an inelastic product
A major contributor to the slowdown in U.S. labor productivity during the 1973–1995 period was
A. capital spending. B. technological change. C. labor force growth. D. investment spending.
Bicycle helmet laws are designed to reduce the severity of injuries resulting from bicycle involvement in traffic accidents. In this sense, the helmet laws are reducing ________ of risky behavior
A) positive externalities B) negative externalities C) transactions costs D) the efficiency
Some economists have argued that path dependence and switching costs can lead to market failure. Which of the following is an example of this argument?
A) Costly celebrity endorsements lead many consumers to buy a product even though it is more expensive or less effective than a product that is not endorsed by a celebrity. B) A consumer who won a lottery for a Super Bowl ticket refuses to sell it for $3,000 even though he would not have paid $3,000 for a ticket if he had not won the lottery. C) While playing the ultimate game, an allocator decides to share $20 equally with a recipient rather than keep the $20 for herself. D) VHS video recorders became more popular with consumers than Sony Betamax recorders even though the Betamax recorders embodied a superior technology.