In a perfectly competitive market that is in long-run equilibrium, which of the following will NOT occur?
A) Firms make only zero economic profit.
B) Firms' owners earn a normal profit.
C) The price equals the minimum average total cost.
D) Entrepreneurs want to enter this industry.
D
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A valid argument against redistributing income to achieve complete equality is that: a. income equality would destroy the social cohesiveness that exists among different income groupings
b. this would eliminate the monetary incentives to work and produce. c. the cost of obtaining the equality would be so deflationary as to promote economic instability. d. income equality would imply class segregation based on factors such as sex or race, since income would be constant.
If the interest rate at which you can lend funds is r percent per year, then the present value of Y dollars to be received next year is
a. (1 + r)Y b. Y / r c. Y d. Y - r e. Y / (1 + r)