A purely competitive firm:
A. must earn a normal profit in the short run.
B. cannot earn economic profit in the long run.
C. may realize either economic profit or losses in the long run.
D. cannot earn economic profit in the short run.
Answer: B
Economics
You might also like to view...
Which of the following is an example of a physical capital in agricultural production?
A) A common canal B) A farmer C) A road D) A tractor
Economics
A country specializes in the production of goods for which it has a comparative advantage, so
A) some producers and consumers win, some lose, but overall the gains exceed the losses. B) all producers win. C) all consumers win. D) producers win, consumers lose, but overall the gains exceed the losses.
Economics