Refer to the below data. Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will:
Answer the question on the basis of the following demand and cost data for a specific firm.
A. Decrease to $25
B. Decrease to $35
C. Decrease to $70
D. Decrease to zero
B. Decrease to $35
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All of the following are tax shields except which one?
A) depreciation allowances B) an interest-only payment of a loan C) a principal payment on a loan D) straight-line depreciation
More water pollution in the United States comes from __________ than any other source
a. factories b. sulfur dioxide (i.e., acid rain) c. cars d. chemicals (used in pesticides and fertilizers) and sewage e. garbage
According to the law of diminishing returns, as more workers are hired:
a) Marginal utility declines. b) Marginal physical product declines. c) Marginal revenue product increases. d) Opportunity cost increases.
Pure monopolists may obtain economic profits in the long run because:
A. of advertising. B. marginal revenue is constant as sales increase. C. of barriers to entry. D. of rising average fixed costs.