Author Question: In the long run, firms in a competitive market A) shut down because profit goes to zero. B) lose ... (Read 43 times)

cnetterville · **on:** Jul 1, 2018

In the long run, firms in a competitive market

A) shut down because profit goes to zero.
B) lose money.
C) are not profit maximizing.
D) earn zero economic profit.

Question 2

Regardless of market structure, all firms

A) consider the actions of rivals.
B) maximize profit by setting marginal revenue equal to marginal cost.
C) produce a differentiated product.
D) have the ability to set price.