The monopolistic competitive firm in short-run equilibrium may experience economic profits that are
A. always negative.
B. always positive.
C. always zero.
D. greater than, equal to, or less than zero.
Answer: D
You might also like to view...
Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is
A) Brand B plus Brand C. B) twenty dollars. C) Brand A. D) Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
All are examples of government purchases that would be included in GDP except:
A. pencils for the employees of the FBI to use. B. the salaries of those in the military working in California. C. replacement calculators for the Congressional Budget Office. D. salaries paid by government to foreign contractors in Iraq.
Which of the following is a consequence of competition?
A. An unrelenting squeeze on prices and profit. B. Positive economic profit in the long run. C. Price-gouging behavior. D. Elimination of the most efficient firms.
The greater the degree of substitutability between capital and labor, the greater will be the downward shift in the cost curve when wage falls.
Answer the following statement true (T) or false (F)