In the model of perfect competition,
A) all firms earn zero economic profit in the long run.
B) all firms use the lowest-cost technologies.
C) all firms take the prevailing market price as given.
D) all participants fully exhaust any potential gains from trade.
E) all of the above occur.
Question 2
Government is a social institution
A) in which people do not engage in competition.
B) in which the public interest, rather than private interests, guide individual behavior.
C) whose behavior is determined by individuals' perceptions of marginal costs and marginal benefits.
D) whose detailed actions are governed by the will of the majority.
