Which of the following is FALSE regarding the long run for a firm in monopolistic competition?
A) The firm makes zero economic profit.
B) Price equals average total cost.
C) Output is not produced at minimum average total cost.
D) None of the above is a false statement.
D
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Use the following table to answer the next question.Year123456Price Index10095105125125120Nominal GDP rises faster than real GDP between years ________.
A. 2 and 4 B. 5 and 6 C. 1 and 2 D. 4 and 5
Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT
A) generous unemployment benefits. B) restrictions on firms' ability to hire and fire workers. C) the existence of an ongoing recession. D) high tax rates.
The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor for the third worker is
A) 6. B) 8. C) 24. D) not known from the information provided.
Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?
A) Your roommate is irrational. B) Your roommate does not know what is in his own best interests. C) You roommate does not know his own preferences as well as you do. D) You constructed a model that made a prediction, and the prediction was refuted.