If perfectly competitive firms are earning positive economic profits in the short run, then in the long run other firms will enter the market.
Answer the following statement true (T) or false (F)
True
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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's profit at the profit maximizing sales price?
A. $30,000 B. $90,000 C. $120,000 D. -$30,000
In the long run, a monopolistically competitive firm will
a. produce a greater variety of goods than do firms in other market structures b. produce a greater output level than would a perfectly competitive firm c. produce where price equals average total cost d. earn an economic profit e. suffer a loss because of its advertising budget
Americans are creating an enormous amount of solid waste daily—over 4 pounds per person per day. How is the United States coping with this extraordinary problem?
What will be an ideal response?
At the point where the demand and supply curves intersect:
A. the market is in disequilibrium. B. there is neither a surplus nor a shortage of the product. C. the buying and selling decisions of consumers and producers are inconsistent with one another. D. quantity demanded exceeds quantity supplied.