The graph depicts a monopolistically competitive firm.
Refer to the above graph. This monopolistically competitive firm is:
A. making a loss in the long run.
B. making economic profit in the short run
C. making economic profit in the long run.
D. making a loss in the short run.
Answer: B
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Which of the following is a way to deter entry?
A) increase costs through legislation that affects only new entrants B) raise switching costs for customers that use your products C) obtain a patent so that others must license your invention D) All of the above.
General equilibrium analysis:
A. is the study of competitive equilibrium in many markets. B. illustrates the dependence among markets. C. concerns competitive equilibrium in a single market, considered in isolation. D. was pioneered by Nobel laureate Vernon Smith.
Other things being equal, the effect of an increase in the price of milk would be illustrated by
a. an upward movement along the demand curve for milk. b. a leftward shift in the demand curve for milk. c. a downward movement along the demand curve for milk. d. a rightward shift in the demand curve for milk.
State and local governments receive money from sales taxes, property taxes, and the federal government.
Answer the following statement true (T) or false (F)