The monopolistically competitive firm shown in the figure:
A. is in long-run equilibrium.
B. might realize an economic profit or a loss, depending on its choice of output level.
C. cannot operate profitably in the short run.
D. can realize an economic profit.
C. cannot operate profitably in the short run.
You might also like to view...
Each year, the president must submit a budget proposal to Congress by:
a. January. b. April. c. July. d. October.
Isoquants reflect the fact that in the long run:
a. inputs can be substituted for each other. b. a fixed set of inputs can produce different levels of output. c. inputs used in production are complementary in nature. d. different levels of input can be used to satisfy a budget constraint.
An indifference curve represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)
You are a manager in a perfectly competitive market. The price is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What level of output should you produce in the short run?
A. 10 B. 5 C. 15 D. 8