Which of the Following Statements About Profit Maximizing Firms in a Competitive

question 81

Multiple Choice

Which of the following statements about profit maximizing firms in a competitive market is FALSE?

• A)Firms earn no economic profit in the long run.
• B)Marginal revenue does not have to equal marginal cost.
• C)p - MC = 0.
• D)Price equals marginal revenue.

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Definitions:

Encomienda System

A labor system instituted by the Spanish in the New World that granted colonists authority over indigenous peoples for the purpose of extracting labor and tribute, while supposedly providing protection and religious instruction.

Gonzalo Pizzaro

A Spanish conquistador known for leading an expedition into the Amazon basin in search of the mythical city of El Dorado.

Conquistadores

Spanish term for “conquerors,” applied to Spanish and Portuguese soldiers who conquered lands held by indigenous peoples in central and southern America as well as the current states of Texas, New Mexico, Arizona, and California.

Spanish Exploration

The period during the late 15th and early 16th centuries when Spain embarked on voyages to the Americas, Pacific, and other parts of the world, leading to colonization and the spread of Spanish culture and influence.