Tombstones are produced in a monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . Its total variable cost is $2,000 . Its demand curve is downward sloping. Given this information, we know that
a. new firms will enter the market
b. Rolling Stones loses $2,000 a week
c. Rolling Stones makes an economic profit of $400
d. Rolling Stones makes an accounting profit of $100
e. Rolling Stones should increase production because with a downward-sloping demand curve, it will increase its economic profit
B
You might also like to view...
Refer to the figure above. How many units of Good Y will be supplied if the market is free?
A) 9 million B) 16 million C) 13 million D) 20 million
Which part of the Federal Reserve System meets every 6 weeks to determine the nation's monetary policy?
A) Federal Open Market Committee B) Board of Governors C) the Federal Reserve Banks D) depository institutions such as commercial banks
The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex. B) It would bend away from the origin, becoming more concave. C) It would shift rightward and not change its slope. D) It would shift leftward and not change its slope.
Unions have been consistent supporters of quotas in hiring
Indicate whether the statement is true or false