A profit-maximizing, monopolistically competitive car wash washes 40 cars per day, and its total cost $200 and currently makes an economic profit of $280. In the long run, everything else equal, the
A. car wash will charge more than $12 per wash.
B. car wash will wash more than 50 cars per day.
C. car wash will need to hire new workers to wash more cars.
D. car wash will wash less than 40 cars per day.
Answer: D
You might also like to view...
If the tradeoff between the two goods is constant, the production possibilities curve is
A) a negatively-sloped straight line. B) a positively-sloped straight line. C) a negatively-sloped curve which is bowed inward. D) a negatively-sloped curve which is bowed outward.
Which of the following is typically considered a fixed cost by academic book publishers but a variable cost by companies that print books?
A) postage and supplies B) wages and salaries C) travel D) rent
Because the prices of final goods and services tend to increase more quickly than the prices of inputs, the short run aggregate supply curve is:
A. upward sloping. B. downward sloping. C. perfectly elastic. D. perfectly inelastic.
A hospital receives a large donation and wants to use the funds to buy a new CT scanner. What is included in the opportunity cost of the new CT scanner?
a. There is no opportunity cost because the money was a gift. b. The foregone benefits of a new CT scanner if the funds are diverted to its purchase. c. The cost of the same CT scanner last year. d. The remaining depreciation expense on the CT scanner the hospital is replacing