The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day?
A) zero
B) between $1 and $700
C) between $701 and $900
D) more than $901
B
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During the start of an expansion, aggregate planned expenditure
A) exceeds real GDP. B) decreases the magnitude of the expenditure multiplier. C) increases the magnitude of the expenditure multiplier. D) is slowly decreasing. E) is less than real GDP.
An increase in the money supply will increase aggregate demand.
Answer the following statement true (T) or false (F)
If your money income stays the same but the price of one good that you are buying goes up, your effective purchasing power
A) rises. B) does not change. C) cannot be determined. D) falls.
The equation for GDP using the expenditure approach is
A. GDP = C + I + G - EX - IM. B. GDP = C + I + G + EX - IM. C. GDP = C + I + G + EX + IM. D. GDP = C + I + G + (IM - EX).