In the long run:
A. firms have the ability to enter or exit the industry.
B. firms are able to alter some, but not all, of their resources.
C. firms are unable to adjust their output choices.
D. None of these are correct.
Answer: A
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Which of the following describes the relative positions of the demand curve and the average total cost (ATC) curve of a monopolistically competitive firm that earns a profit in the short run?
A) In the short run, the firm's demand curve will lie above its ATC curve. The demand curve will be tangent to the ATC curve in the long run. B) In the short run, the firm's demand curve will lie below its ATC curve. The demand curve will be tangent to the ATC curve in the long run. C) In the short run, the firm's ATC curve will cross the demand curve at the profit maximizing level of output. The demand curve will be tangent to the ATC curve in the long run. D) In the short run, the firm's demand curve will cross its ATC curve at the ATC curve's lowest point. The demand curve will be above the ATC curve in the long run.
When a monopolist is able to price-discriminate: a. its profits tend to increase and its output tends to fall. b. both its profits and output tend to increase
c. both its profits and output tend to decrease. d. its profits tend to fall and its output tends to increase.
Porter's five forces model is trying to identify things that leads to a company's success
Indicate whether the statement is true or false
Inflation increases the use of money as a store of value
a. True b. False Indicate whether the statement is true or false