Economists proclaim that competitive firms make zero economic profit in the long run. This shows how
A) detached economists are from the real world.
B) unrealistic economic theory is.
C) firms cover all their cost, both monetary and non-monetary.
D) firms cover only monetary cost when economic profits are zero.
C
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In the absence of externalities, which of the following is true of economic efficiency?
a. It occurs where marginal costs of production equal marginal benefits of consumption. b. It occurs where quantity supplied is equal to quantity demanded. c. It maximizes the total net benefits to consumers and producers. d. All of the above. e. None of the above.
A particular good is not scarce when
A) everyone is able to purchase as much of the good as they wish to purchase. B) it is available in large enough quantities to meet everyone's needs. C) no one must sacrifice anything to obtain more of the good. D) there is a surplus of the good.