In a purely competitive industry:
A. there will be no economic profits in either the short run or the long run.
B. economic profits may persist in the long run if consumer demand is strong and stable.
C. there may be economic profits in the short run but not in the long run.
D. there may be economic profits in the long run but not in the short run.
Answer: C
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If the demand for cell phone service is inelastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value). B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value). C) the percentage change in quantity demanded is equal to the percentage change in price. D) the quantity demanded does not change in response to changes in price.
A flexible exchange rate system guarantees a country will not experience an exchange rate crisis
Indicate whether the statement is true or false