Refer to the scenario above. Suppose the discount weight attached to the future benefit is 1/5. People will earn a net benefit equal to:
A) -500 utils.
B) -700 utils.
C) 860 utils.
D) 900 utils.
A
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The above figure represents Tony's Pizza Parlor, a firm in monopolistic competition
a. What quantity will be produced? b. What price will be charged? c. What is Tony's total cost? d. What is Tony's total revenue? e. What is Tony's economic profit or loss? f. Is this a long-run equilibrium? Why or why not?
Firms have incentive to enter a monopolistically competitive market if:
A. positive profits are being earned and the price is below MC. B. zero profits are being made and they can duplicate the product exactly. C. positive profits are being earned and they can create a similar product. D. zero profits are being made and they can create a similar product.
A tax on the sellers of coffee mugs
a. increases the size of the coffee mug market. b. decreases the size of the coffee mug market. c. has no effect on the size of the coffee mug market. d. may increase, decrease, or have no effect on the size of the coffee mug market.
What is the lowest price the firm would accept in the short run?
