In the short-run under perfect competition, which of the following is always true?
a. Economic profit earned by firms can be negative, zero, or positive.
b. Economic profit earned by firms is always zero.
c. Economic profit earned by firms can be zero or positive, but not negative.
d. Economic profit earned by firms is positive, but not zero or negative.
a
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Perfectly competitive markets feature relatively high barriers to entry
a. True b. False Indicate whether the statement is true or false
Historically, Keynesian economists have argued that government spending will stimulate aggregate demand more than tax cuts because
a. government spending will stimulate aggregate demand more quickly than a tax cut. b. there are fewer adverse side effects to an increase in government spending. c. all of the spending will add to aggregate demand, but a portion of the tax cut will be saved. d. an increase in government spending can quickly be reversed once the economy has recovered.