A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18 . From this information we can infer that
a. the firm is currently maximizing its profit.
b. the profits of the firm are negative.
c. firms are likely to leave this market in the long run.
d. All of the above are correct.
a
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Which of the following would not be studied in microeconomics?
A. How an early freeze in California will affect the price of fruit. B. Whether the federal budget should be balanced. C. Whether to study or watch TV tonight. D. How individual firms decide how much to produce.
Discouraged workers are ________ in the unemployment rate, and this tends to ________ the unemployment rate
A) counted; overstate B) counted; understate C) not counted; overstate D) not counted; understate
What are the key steps for analyzing Demand functions based on Regression results?
What will be an ideal response?
Antitrust laws can restrain the abuse of monopoly power.
Answer the following statement true (T) or false (F)