A zero economic profit is not a bad thing because:
a. it is a situation in which the owners, or shareholders, of a firm could not do better elsewhere.
b. it is a situation in which the resources of a firm are always optimally utilized.
c. it means that a firm is paying an interest rate that is below the market rate.
d. it means that stock prices will not fall.
e. it means that investors are better off in the current venture than they would be in any other investment.
a
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When dealing with negative externalities, government action is required
A) only if transactions cost are low. B) for any bargain to be successful. C) only in environmental disputes. D) only if transactions costs preclude bargaining between polluter and victim.
Do all consumers in a competitive market receive the same level of consumer surplus? Explain with an example
What will be an ideal response?