If a perfectly competitive firm has economic profits greater than zero, then we know that
A. the firm is producing at the bottom of the average total cost curve.
B. the firm's industry is not in long-run equilibrium.
C. the firm's industry is in long-run equilibrium.
D. the firm will reduce output.
Answer: B
You might also like to view...
In the above, which figure shows a line with a slope of 1.0?
A) Figure A B) Figure B C) both Figure A and Figure B D) neither Figure A nor Figure B
Which of the following economic perspectives for decision making is a statement that describes the world as it is?
a. Positive statement b. Normative statement c. Cognitive statement d. Reflective statement
Monetary policy includes changes in government spending
a. True b. False Indicate whether the statement is true or false
Which of the following is a partially valid economic argument for restricting free trade?
a. Restrictions on foreign trade will increase employment and permanently reduce unemployment. b. Removal of restrictions that have existed for years will initially cause inflation. c. Infant industries need permanent protection to develop and gain productive efficiency. d. A nation needs to protect industries that are vital to national defense in case of future international conflict.