Economic profit
a. does not exist in competitive markets.
b. provides an incentive for investors to undertake risky projects.
c. motivates entrepreneurial innovation.
d. does all of the above.
e. is both b and c.
E
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The BLS reported that the CPI in July 2010 was 226 . This news tells you that _______
A. consumer prices during July were 226 percent higher than they were during the base year B. the CPI inflation rate in July was 26 percent a year C. consumer prices rose by 26 percent during the month of July D. the prices of consumption goods and services have risen, on average, by 126 percent since the base year
Let the production function be q = ALaKb. The function exhibits constant returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.