If an industry is in long-run perfectly competitive equilibrium
A. all firms will be earning economic profits.
B. most firms will be earning economic profits.
C. a few firms will be earning economic profits.
D. no firm will be earning an economic profit.
D. no firm will be earning an economic profit.
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If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping b. Joe must have a comparative advantage in carrot chopping c. Sam has an absolute advantage in carrot chopping d. Sam must have a comparative advantage in carrot chopping e. we can conclude nothing about absolute advantage
Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue from the last unit of output must be
a. $1 b. $1.50 c. $4 d. $5 e. $20