Suppose a typical firm in a particular industry is making positive economic profits. These economic profits
a. reflect a waste of society's scarce resources and reflect inefficient production.
b. signal owners of factors of production to move their resources out of that industry.
c. imply that accounting costs are greater than economic costs in this industry.
d. signal owners of factors of production to move resources into this industry.
D
You might also like to view...
Larger increases in the demand for labor than in the supply of labor explain:
A. the slowdown in real wage growth. B. skill-biased technological change. C. the substantial increase in real wages. D. increasing wage inequality.
As the result of an increase in the price of capital, the demand for labor would ________, the supply of labor would ________, and the quantity of labor hired would ________
A) decrease; remain the same; decrease B) decrease; decrease; decrease C) decrease; increase; remain the same D) increase; remain the same; decrease
Total reserves are the sum of ________ and ________
A) excess reserves; borrowed reserves B) required reserves; currency in circulation C) vault cash; excess reserves D) excess reserves; required reserves
Productive efficiency occurs in markets when
a. goods are produced at the lowest possible average total cost b. goods are produced at the lowest average variable cost c. goods are produced at the lowest marginal cost d. goods are produced at the lowest average fixed cost e. the economy is producing the maximum quantity of goods and services it can