If long-run equilibrium is present in a competitive market, the typical firm in the market will be
a. making economic losses.
b. making zero economic profit.
c. making economic profit.
d. making a rate of return that is higher than the rate earned in other industries.
e. both c and d are correct.
B
Economics
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The branch of economics which studies the behavior of entire economies is called
A) public economics. B) macroeconomics. C) microeconomics. D) normative economics.
Economics
According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment
A) below; upward B) below; downward C) above; upward D) above; downward
Economics