Firms in perfectly competitive industries that are earning short-run profits will likely break even in the long run.
Answer the following statement true (T) or false (F)
True
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Which of the following is an example of the life-cycle motive for saving?
A. Pat puts $400 per month in his 401(k) retirement account. B. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job. C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
When purchasing a future contract, the buyer of a futures contract:
A. must pay a set amount to the seller regardless of what the future price turns out to be. B. assumes very little risk of the future price fluctuation of some asset. C. agrees to pay the seller later where the payment is based on the future price of some asset. D. none of these are true.