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Author Question: Does a competitive long-run equilibrium require cost-minimization? A) Yes, if firms fail to be as ... (Read 37 times)

Brittanyd9008

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Does a competitive long-run equilibrium require cost-minimization?
 
  A) Yes, if firms fail to be as efficient as their competitors, they are driven out of the market.
  B) No, in the long run, firms make zero profits.
  C) Yes, if they didn't, even less efficient firms would enter the industry.
  D) No, because competition ensures their survival.

Question 2

Suppose a farmer in a perfectly competitive agricultural industry rents land that is uniquely productive in the production of a certain crop. In the long run,
 
  A) the owner of the land receives economic rent while the farmer earns zero economic profit.
  B) the owner of the land earns zero economic profit while the farmer receives economic rent.
  C) both the farmer and the owner of the land receive economic rent.
  D) neither the farmer nor the owner of the land receive economic rent.


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vkodali

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Brittanyd9008

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


cpetit11

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Reply 3 on: Yesterday
Excellent

 

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