Which of the following is characteristic of a perfectly competitive market?
A. Exit of small firms when profits are high for large firms.
B. Marginal revenue lower than price for each firm.
C. Zero economic profit in the long run.
D. A small number of firms.
Answer: C
Economics
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C = $40 million + 0.6(1 - 0.2)Y I = $35 million G = $31 million NX = -$6 million Based on the above data, the equilibrium level of GDP is
A) $113.6 million. B) $192.3 million. C) $208.3 million. D) $833.3 million.
Economics
Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the total variable cost is:
A. $2,800. B. $4,000. C. $4,500. D. $6,300.
Economics