Which of the following is not necessarily true in the long for a competitive industry?
a. Firms earn zero profits.
b. Firms set MC = MR.
c. A firm will not produce if the market price is less than their break-even price.
d. The long-run supply curve is more elastic than the short-run supply curve.
a. Firms earn zero profits.
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Everything else held constant, when the current value of the domestic currency increases, the ________ domestic assets ________
A) demand for; increases B) quantity demanded of; increases C) demand for; decreases D) quantity demanded of; decreases
An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is $15 per bushel. The owner should hire the extra worker if the wage rate is no greater than
a. $50 per day. b. $150 per day. c. $200 per day. d. $300 per day.