Refer to the above below graph. This monopolistic ally competitive firm is earning economic profits in the short run and:
The graph depicts a monopolistic ally competitive firm.
A. Will continue to have economic profits in the long run
B. Will earn only normal profits in the long run
C. This will cause its demand curve to shift to the right in the long run
D. This will cause its cost curves to rise in the long run
B. Will earn only normal profits in the long run
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Suppose, with a given supply and demand curve, the market for guitars would clear at $500, but the current price of guitars is $700. Given the above information,
A) there is a shortage of guitars. B) there is a surplus of guitars. C) the market for guitars is fully coordinated. D) the quantity of guitars supplied equals the quantity demanded.
Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0. B) $1. C) $2. D) $3.
If the cross elasticity of demand between two goods is -0.56, then a fall in the price of one good leads to a ________ shift in the ________ of the other good
A) rightward; demand B) rightward; supply C) leftward; demand D) leftward; supply