If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
A) Price is equal to the minimum long-run average cost of production.
B) Economic profit equals zero.
C) The value of the last unit of output produced is equal to the value of the resources used to produce it.
D) There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.
D
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When a nation is in a debt crisis, the government's level of debt is so high that:
A. monetary policy is ineffective. B. the government is unable to find willing lenders so it can continue borrowing. C. it can only be solved with a fiscal stimulus of lower taxes and more government spending. D. other countries will be unwilling to buy goods and services from the nation.
Inferior goods are always substandard.
Answer the following statement true (T) or false (F)