If a firm fails to provide investors with at least a normal rate of return
A) it will not be able to remain in business in the short run.
B) it will have a positive economic profit but a negative accounting profit.
C) it will not be able to remain in business in the long run.
D) it will shut down in the short run but will be able to remain in business in the long run.
C
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The demand curve for a perfectly competitive firm is horizontal because
A) consumers are willing to pay any price to obtain its product. B) its production decisions cannot influence the market price. C) the firm profits from setting its price higher than the market price. D) its product is easy for consumers to differentiate from those of other firms.
An increase in AD will trigger less inflation under which of the following conditions?
A. AD is relatively steep. B. AD is relatively flat. C. AS is relatively steep. D. AS is relatively flat.