Firms are ________ with an economic profit of zero, they will ________ in the industry since they ________ be better off in another industry
A) satisfied, stay, won't
B) unsatisfied, leave, will
C) satisfied, leave, will
D) unsatisfied, stay, won't
A
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Which group of countries benefits most from trade?
a. low-income countries b. low- and medium-income countries c. high-income countries d. medium- and high-income countries
If average cost is positive,
A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.
The idea behind the effective labor demand curve is that
A. demand is not as effective as supply. B. demand is more effective than supply. C. the marginal product of labor is not equal to the real wage. D. firms are willing to meet demand for their output at a specific price.
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 800 units is $3.50. The minimum possible average variable cost is $3.00. The market price of the product is $4.00. To maximize profits or minimize losses, the firm should:
A. Continue producing 800 units B. Continue production, but produce less than 800 units C. Increase production to more than 800 units D. Shut down