In the above table, if the firm produces 2 units of output, it will
A) make an economic profit of $9.
B) make an economic profit of $60.
C) incur an economic loss of $9.
D) incur an economic loss of $60.
C
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Industries with high barriers to entry
a. Pushes profits to normal returns b. increases the likelihood of firms entering the industry c. help firms sustain profits d. increases the number of competitors
A _____ puts the assets of two corporations under a common management
a. acquisition b. vertical integration c. merger d. proxy fight
What would likely happen to the long-run aggregate supply curve if the U.S. federal government decreases marginal tax rates on wages?
A. The LRAS curve would shift leftward. B. The LRAS curve would remain stable while the AD curve would shift leftward. C. The LRAS curve would shift rightward. D. The LRAS curve would remain stable while the AD curve would shift rightward.
Long-run equilibrium is characterized by zero profits in
A. monopolistic competition only. B. perfect competition only. C. market structures in which there are barriers to entry. D. both perfect competition and monopolistic competition.