An economic profit of zero indicates a satisfactory situation for the firm

Which of the following supports the skeptics doubts about the idea that a "New Economy" had emerged in the late 1990s?

A) In early 2000, investment in computer equipment turned to negative growth. B) A drop in productivity growth in 2001 was followed by a bounce-back of productivity growth in early 2002. C) The opinion of Alan Greenspan, Chairman of the Federal Reserve System, concerning the pace at which technological innovations are being applied D) None of the above.

A price elasticity of zero corresponds to a demand curve that is:

A. horizontal. B. vertical. C. downward sloping with a slope always equal to 1. D. either vertical or horizontal.