Refer to the diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by:
A. diagram a only.
B. diagram b only.
C. diagram c only.
D. both diagrams b and c.
B. diagram b only.
You might also like to view...
The phrase "reversal of fortunes" refers to the fact that:
A) colonies that were existing in 1500, are now no longer colonies and are independent nations. B) areas that were relatively highly urbanized in 1500, are generally poorer today. C) colonies that were existing in 1500, have all recorded negative growth rate over the last century. D) areas that were relatively less urbanized in 1500, are generally poorer today.
If an industry currently dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues, with the remaining two firms each representing 5%, then one of the large firms merged with one of the small ones, what would be the new four firm concentration ratio and the new Herfindahl-Hirschman Index for this industry?
a. 100%; 3,050 b. 100%; 2,750 c. 95%; 3,050 d. 95% 2,750
All of the following can be used to increase monopoly power except
A. Antitrust laws. B. Discounts for customer loyalty. C. Acquisitions. D. Lawsuits.
Within the framework of economics, optimization means providing a good or service until
a. total benefits are maximized. b. total benefits and total costs are equal. c. marginal benefits exceed marginal costs by the greatest amount possible. d. marginal benefits and marginal costs are equal. e. as long as total benefits are greater than total costs, any amount may be optimal under the right circumstances.