When a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost,
a. the firm must be earning a positive economic profit.
b. the firm may be incurring economic losses
c. there is a deadweight loss to society, but it is exactly offset by the benefit of excess capacity.
d. new firms will enter the market in the long run.
b
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The unemployment rate reported by the Bureau of Labor Statistics includes all of the following type of unemployment with the exception of
A) frictional unemployment. B) structural unemployment. C) hidden unemployment. D) cyclical unemployment.
Social pressures and personal appeals increase the number of free riders
a. True b. False Indicate whether the statement is true or false
Strategic behavior is key feature in which market structure?
A. Monopolistic competition B. Perfect competition C. Oligopoly D. Monopoly
A basic tenet of the theory of the firm is that the firm's primary objective is to
A. produce a given level of output at a specified cost. B. operate for the benefit of society. C. stay out of debt. D. maximize economic profits.