Which of the following statements about profit maximizing firms in a competitive market is FALSE?

A) Firms earn no economic profit in the long run.
B) Marginal revenue does not have to equal marginal cost.
C) p - MC = 0.
D) Price equals marginal revenue.

B

Economics

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What will be an ideal response?

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Increase in the real interest rate will ________ the expenditure curve:

A) decrease. B) increase. C) not change. D) none of the above.

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