In building a model to analyze economic situations, one of the important assumptions is

In a perfectly competitive market, all firms in the long run earn:

A) positive economic profit. B) positive accounting profit. C) zero economic profit. D) zero accounting profit.

Suppose the one-year nominal interest rate is 2.0% in the United States and 5.0% in Canada. Should you hold Canadian bonds or U.S. bonds? Explain

What will be an ideal response?