A perfectly competitive firm would be willing to remain in the industry in the long run at zero economic profit because
a. its total revenues would be positive.
b. accounting profit would be negative.
c. revenue is equal to all costs, including the opportunity cost of capital and labor.
d. its fixed costs would prevent it from leaving the industry.
c
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What would happen in the market for loanable funds if the government were to increase the tax on interest income?
a. Interest rates would rise. b. Interest rates would be unaffected. c. Interest rates would fall. d. The effect on the interest rate is uncertain.
Which of the following would tend to DECREASE the elasticity of demand for good X?
A. The cost of producing X decreases. B. Several firms which used to produce substitutes for X go out of business. C. Consumers begin spending a smaller percentage of their income on X. D. both b and c E. all of the above