If firms are exiting a market then
A) economic profits must be zero
B) economic profits must be greater than zero
C) economic profits must be less than zero
D) both economic and accounting profits must be greater than zero.
C
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The above table has data from the nation of Atlantica. Based on these data, what is marginal propensity to consume?
A) 1.50 B) 1.00 C) 1.33 D) 0.50 E) 0.75
The theory of optimum currency areas predicts that
A) floating exchange rates are most appropriate for areas closely integrated through international trade and factor movements. B) fixed exchange rates are most appropriate for areas that are loosely integrated through international trade and factor movements. C) fixed exchange rates are most appropriate for areas closely integrated through international trade and factor movements. D) floating exchange rates are most appropriate for all countries in Europe. E) fixed exchange rates are most appropriate for all countries in Europe.