In the long run in a perfectly competitive market:
A. supply is perfectly elastic when all firms have the same cost structure.
B. firms operate at an efficient scale.
C. firms earn zero economic profits.
D. All of these are true.
Answer: D
Economics
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Refer to the scenario above. What is the value of having the extended warranty during the second year of ownership?
A) $16.52 B) $24.79 C) $40 D) $48.75
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The aggregate expenditures model is built upon which of the following assumptions?
A. Prices are fixed. B. The economy is at full employment. C. Prices are fully flexible. D. Government spending policy has no ability to affect the level of output.
Economics