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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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.
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.