Multiple Choice
When an economist states that a firm is earning zero economic profit, this statement implies that the firm
A) will be forced out of business unless market conditions change.
B) is doing as well as it could in any other line of business.
C) is earning a zero rate of return on its assets.
D) could earn a higher rate of return in other industries.
Correct Answer:
Verified
Correct Answer:
Verified
Q146: Which of the following is most likely
Q147: If long-run equilibrium is present in a
Q148: A competitive price-taker firm would be willing
Q149: If the expansion of output in an
Q150: If a restaurant in a summer tourist
Q152: Regardless of quantity in long-run equilibrium, the
Q153: Figure 9-10 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7348/.jpg" alt="Figure 9-10
Q154: When firms have an incentive to exit
Q155: In competitive price-taker markets, if one firm
Q156: A firm is currently operating where the