Author Question: Perfectly competitive firms earn zero economic profit in the long run. a. True b. False Indicate ... (Read 66 times)

charchew · **on:** Jun 30, 2018

Perfectly competitive firms earn zero economic profit in the long run.
a. True
b. False
Indicate whether the statement is true or false

Question 2

As suppliers and potential suppliers of exhaustible resources continually calculate whether to extract now or in future, and how much to extract, an equilibrium arises when:
a. the cost of extracting such resources is equal to its price.
b. the rate of return for such resources equals the rate of interest on alternative uses of the funds.
c. the cost of extracting such resources is equal to the price of the commodity using these resources.
d. the price of such resources is equal to the rate of interest of bank accounts and other interest-bearing investments.
e. the rate of return on alternative investments is equal to the cost of extracting such resources.