In long-run perfect competition, no firm can earn a normal profit
Indicate whether the statement is true or false
F
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Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living
Indicate whether the statement is true or false
In a small economy, consumption spending is $6,000, government spending is $1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is gross domestic product?
A) $9,700 B) $9,800 C) $10,800 D) $11,700
Which of the following statements best describes the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long run. b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run. c. In the long run, positive economic profit will be eliminated. d. None of these.
Which of the following could be used to calculate the profit for a firm?
a. Profit = MR - MC b. Profit = MR - TC c. Profit = (P - MC) × Q d. Profit = (P - ATC) × Q