In the short run, if a perfectly competitive firm is producing at a price below average total cost, its economic profit is:
a. positive.
b. zero.
c. negative.
d. normal.
c
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Testing a theory by comparing the theory's implications with data obtained in the real world is called
A) empirical analysis. B) descriptive calibration. C) historical variance analysis. D) univariate analysis.
If the cost of production incurred by two producers in a competitive industry differs, the long-run supply curve:
a. will be a downward sloping step function. b. will be an upward rising step function. c. will be a horizontal line at the market price. d. will be a vertical line at the equilibrium output.
Econometrics is the branch of economics that _____.?
A. ?studies the behavior of individual economic agents in making economic decisions B. ?develops and uses statistical methods for estimating economic relationships C. ?deals with the performance, structure, behavior, and decision-making of an economy as a whole D. ?applies mathematical methods to represent economic theories and solve economic problems
If price elasticity of supply is less than 1
A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.