1.When economic profits are zero, firms will stop entering an industry in the long run.

a.True

b.False

2.In a large organization, coordination and communication problems are frequent sources of diseconomies of scale.

a.True

b.False

3.Rent seeking sometimes involves placing restrictions on competition.

a.True

b.False

4.A simple and convenient first choice to explain the behavior of firms is through the profit motive.

a.True

b.False

5.Business managers never record costs in dollar values.

a.True

b.False

6.If a firm closes on a temporary basis, losses cannot be reduced.

a.True

b.False