Why can a monopoly make an economic profit in the long run?
A) because there are close substitutes for the firm's product
B) because the firm is protected by barriers to entry
C) because the firm produces where MR=MC
D) because P > MR
E) ALL of the above are reasons why a monopoly can make an economic profit in the long run.
B
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Intraindustry trade is characterized by what two features of the industry and market?
A) Diseconomies of scale and homogeneous products B) Non-tariff barriers and large-scale foreign investment C) Quota auctions and low effective rates of protection D) Economies of scale and differentiated products E) Government subsidies and industrial policy
Those goods having a calculated income elasticity that is negative are called:
a. producers' goods b. durable goods c. inferior goods d. nondurable goods e. none of the above
Economists believe that the optimal level of pollution is zero
a. True b. False Indicate whether the statement is true or false
The MC curve intersects the AVC curve at the ____________ of the AVC curve.
Fill in the blank(s) with the appropriate word(s).