Multiple Choice
In an industry with free entry and exit, positive economic profit:
A) indicates a market failure.
B) can never occur.
C) cannot be sustained indefinitely.
D) can be sustained indefinitely.
Correct Answer:
Verified
Correct Answer:
Verified
Q130: If resources are misallocated in a perfectly
Q131: Refer to the figure below. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"
Q132: Assume that all firms in this industry
Q133: An example of an implicit cost is:<br>A)interest
Q134: The figure below depicts the short-run market
Q136: Refer to the figure below. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"
Q137: One assumption of the perfectly competitive model
Q138: In a market with barriers to entry:<br>A)firms
Q139: If the demand curve fails to capture
Q140: The allocative function of price is to:<br>A)distribute