In the long run in a monopolistically competitive industry,
a. economic profit will be positive
b. the price will be driven to zero
c. the firm will not operate where MR = MC
d. economic profit will be zero
e. the price will exceed average total cost
D
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Explain the concept of "crowding in."
What will be an ideal response?
When we look at a production possibilities curve, the opportunity cost can be understood as
A) The point of maximum production of one good B) The amount of the other good that must be given up for one more unit of production C) The total cost of producing the good D) The price people will pay for the additional amount produced
An increase in input prices will cause
A) supply to shift rightward, equilibrium price to rise, and equilibrium quantity to fall. B) supply to shift leftward, equilibrium price to rise, and equilibrium quantity to fall. C) supply to shift rightward, equilibrium price to fall, and equilibrium quantity to rise. D) supply to shift leftward, equilibrium price to fall , and equilibrium quantity to rise.
Discuss the role of individuals and governments in committing environmental damage