A firm earns a normal profit when its:
A. economic profit is zero.
B. accounting profit is positive.
C. economic profit is positive.
D. accounting profit is zero.
Answer: A
You might also like to view...
As their respective names imply, monopoly and monopolistic competition are the most similar of the four market structures
Indicate whether the statement is true or false
If government regulations significantly increase the cost of operating within a particular market, one result is that
A) new firms are discouraged from entering the market. B) barriers to entry are nullified. C) a perfectly competitive market environment is encouraged. D) new firms are encouraged to enter the market.
According to the dual-control approach, states set abatement levels for existing stationary sources below the EPA-administered standard for new sources. The "new source bias" associated with this approach is that
a. firms have an incentive to shut down their businesses b. states have an economic motive to set very stringent standards for existing sources c. firms have an incentive not to start new construction and instead remain in older, existing facilities d. the EPA has an incentive to set lenient standards for new sources
Which of the following would increase GDP?
a. You buy 100 shares of Wal-Mart stock. b. Your car is destroyed by a fire, and you purchase a two-year-old car to replace it. c. Your car is damaged by a fire, and you hire a mechanic to repair it. d. Your car is damaged by a fire, and you reduce the number of hours you work to repair the car yourself.