We would expect an industry to expand if firms in that industry are:
A. earning normal profits.
B. earning economic profits.
C. breaking even.
D. earning accounting profits.
Answer: B
Economics
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The term that is used to refer to a situation in which one party to a transaction has more or better information than the other party is
A) adverse selection. B) asymmetric information. C) moral hazard. D) deceptive trade practices.
Economics
A firm wanting to maximize profits should operate in such a way that
A) the MRP of each input is equal to or greater than its MFC. B) MRP equal MFC in the input market but MC must exceed MR in the output market. C) marginal revenue must be equal to the marginal revenue product. D) none of the above.
Economics