A monopolistically competitive firm
A) cannot make a positive economic profit in the long run because of entry.
B) can make a positive economic profit in the long run because it sells a differentiated good.
C) can make a positive economic profit in the long run because there are only a few firms in the industry.
D) cannot make a positive economic profit in the long run because it sells a homogeneous good.
A
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If a perfectly competitive firm's average total cost is less than the price, then the firm
A) incurs an economic loss. B) makes an economic profit. C) makes zero economic profit. D) makes either zero economic profit or an economic profit depending on whether the marginal revenue is equal to or greater than the price. E) None of the above answers is correct because the relationship between the price and average total cost has nothing to do with the firm's profit.
All else constant, if the use of historic costs understates the opportunity costs associated with using a particular piece of capital, accounting profit will be understated
Indicate whether the statement is true or false
Based on the table for total, marginal, and average revenue, if the firm sells at a whole dollar unit price below $3, the marginal revenue is ______.
a. optimal
b. zero
c. negative
d. positive
If Jane's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans:
A. Jane will not purchase any more jeans. B. Jane can benefit by purchasing more jeans. C. the opportunity cost of a pair of jeans is lower than the price. D. Jane will decrease her total utility by purchasing more jeans.