According to the graph shown, the monopolistically competitive firm will charge a price:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. P3 in the short run, and earn positive profits.
B. P2 in the long run, and earn zero profits.
C. P3 in the long run, and earn zero profits.
D. P2 in the short run, and earn positive profits.
A. P3 in the short run, and earn positive profits.
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Laws and courts tend to make markets work ________ and make society ________
A) less effectively; poorer B) less effectively; richer C) more effectively; poorer D) more effectively; richer
If firms in a competitive market have different cost functions, then
A) there is no short run market supply curve. B) the market supply curve reflects those firms' operating envelopes, even in the short run. C) some of the firms will shut down because their costs are too high to compete. D) the firms' marginal costs will be different at the market price.
We experienced the highest inflation during the period from
A. 1958 to 1961. B. 1961 to 1964. C. 1978 to 1981. D. 1984 to 1987.
One surprising insight from viewing policy as a "game" is that
A) central bankers should project an image of being conservative on economic policy matters, regardless of their personal views. B) it is more difficult to control inflation when the central bank is highly independent. C) uncertainty over the impact of policy makes little difference in designing an optimal policy. D) money growth has little or no impact on inflation in the long run. E) decreasing money growth may substantially increase the rate of inflation in the long run.