In the long run, a competitive firm will earn zero economic profit.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the:
a. marginal utility of the next haircut would be zero or negative.
b. marginal utility of the next haircut would increase.
c. marginal utility of the next haircut would be zero or positive.
d. total utility of both haircuts would be zero or negative.
e. total utility of both haircuts would be higher than just one haircut.
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