In the long run, competitive firms MUST be profit maximizers because if they do not maximize profits,
A) they will not survive.
B) they will not be price takers.
C) they will attract entry.
D) the profits that they do earn will only cover variable costs.
A
Economics
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Provide a definition of development economics. Justify your choice carefully
What will be an ideal response?
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In a country without foreign trade and income taxes, if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will
A) increase by 50 if the MPC is 1. B) decrease by 50 for any value of the MPS greater than zero. C) decrease by 100 if the MPS is 0.5. D) increase by 200 if the MPS is 0.25.
Economics