In considering economic profit in a market economy, it is correct to say that
A) there should never be any economic profit.
B) economic profit will only occur, even in the short run, as a result of imperfect competition.
C) economic profit performs an important function in allocating resources to their most highly valued uses.
D) economic profit tends to reduce the production efficiency of the economy, leading to wasted resources.
C
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The ground rules, customs, and conventions that govern the behavior of market participants are often referred to as institutions
Indicate whether the statement is true or false
Net present value and internal rate of return capital budgeting decisions can differ because
A) the initial costs of the capital outlays differ. B) the cash flow streams differ. C) the discount rates differ for different time periods. D) All of the above