In long-run equilibrium, the monopolistically competitive firm:
a. will break even.
b. will cease to advertise.
c. will earn a positive economic profit.
d. will face a perfectly elastic demand curve.
e. will no longer need to engage in non-price competition.
a
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Use the figure below to answer the following question.
If actual production and consumption occur at Q1 and the price is P2
A. deadweight loss equals area f. B. producer surplus equals area c. C. producer surplus equals area c + b. D. consumer surplus equals area a + b.
This table shows individual demand schedules for a market.
According to the table shown, at a price of $1.00, how much of the good will be demanded by Betty?
A. 16
B. 11
C. 46
D. 30
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
The maximum number of skirts that Becky can make in a day is represented by point:
A. V B. U C. T D. Z
Advertising can be a signal of quality
a. only if consumers are irrationally attracted to products they see advertised. b. if advertising is freely available to all firms. c. if the benefit of attracting customers is greater for firms with better products. d. only if the content of the ads contains credible information about the products.