Question
Economic profit is zero if: a. all factors are paid their marginal products and the law of diminishing returns is valid. b. all factors are
Economic profit is zero if:
a. all factors are paid their marginal products and the law of diminishing returns is valid. | ||
b. all factors are paid their marginal products and there are constant returns to scale. | ||
c. all firms maximize profits and none are competitive. | ||
d. all firms maximize profits and all factors are paid their marginal products |
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
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