When firms in an industry are earning normal profits

Assignment Help Microeconomics

Reference no: EM13825647

Problems-

1. When firms in an industry are earning normal profits:

A) they are likely to be investigated for price gouging.

B) they are earning zero accounting profits.

C) the number of firms in the industry is stable.

D) their stocks are not valued by investors.

2. Sam, who owns 100 shares of IBM stock, hopes to raise the market price of the stock by buying another 100 shares. The primary reason his endeavor will fail is that:

A) He is such a small part of the overall market that his extra demand will have a negligible effect on the market price.

B) IBM is a monopoly and therefore controls the price of its stock.

C) the Securities and Exchange Commission will intervene if anyone tries to influence stock prices

D) the other stockholders will attempt to neutralize Sam's efforts.

Additional Information-

These multiple choice problems are belong to Economics. The first problem discusses about firms earning normal profits in an industry and the second problem is about a person investing in IBM stock and then buys additional stock.

Reference no: EM13825647

Questions Cloud

Difference between experimental and quasi-experimental : Difference Between Experimental, Quasi-Experimental

Discuss about new firm entering competitive market structure : These multiple choice problems belong to Economics. The first problem discusses about new firms entering competitive market structure and the second problem discusses about third degree price discrimination.

Brief history of the credential and credentialing body : Provide a brief history of the credential and credentialing body. Explain the purpose of the certification and the certification audience.

Problem-based learning scenario - autoedge : Compare and contrast how production analysis is carried out and be able to evaluate production situations using economy of scale, elasticity and other analytic tools.

When firms in an industry are earning normal profits : These multiple choice problems are belong to Economics. The first problem discusses about firms earning normal profits in an industry and the second problem is about a person investing in IBM stock and then buys additional stock.

Difference between economic profit and accounting profit : These multiple choice problems belong to Economics. The first problem is about the difference between accounting profit and economic profit and the second problem is about deriving at short-run supply curve for an industry.

Reporton nurses scope of delegating dutie to other personnel : Report on Nurses Scope of Delegating Duties To Other Personnel

Which industries is likely to be a decreasing-cost industry : These multiple choice questions belong to Economics. The first question is about decreasing cost industry and the second question is about finding true or false for a statement about utilities being considered natural monopolies.

The effects of caffeine ingestion on anaerobic performance : Proposal Outlining The Effects Of Caffeine Ingestion On Anaerobic Performance In Adults

User Account

All Pages