In a perfectly competitive market in the long run, which of the following is not correct?
A. Economic profits are zero.
B. Firms are attempting to maximize profit.
C. Firms are maximizing total revenue.
D. There are no better uses for the firm's resources.
Answer: C
You might also like to view...
In 2011, a number of Canadians purchased homes in Arizona. Which of the following would not be a logical explanation for this?
A) The value of the Canadian dollar relative to the U.S. dollar increased during this time. B) The U.S. dollar appreciated relative to the Canadian dollar during this time. C) The Canadian dollar appreciated during this time. D) The U.S. dollar depreciated during this time.
A price ceiling set below the market clearing price will tend to cause which of the following?
A) a surplus B) a shortage C) an increase in demand D) a reduction in supply
Keynes argued that the factors that make up aggregate demand are stable and do not change unexpectedly.
Select whether the statement is true or false. A. True B. False
A monopolistically competitive firm maximizes profits or minimizes losses in the short run by
A. Producing at the output level where MC equals ATC. B. Producing at the output level where ATC is minimized. C. Producing at the output level where MR equals MC. D. Setting price equal to marginal cost.