Since the firm in the above figure is operating in a monopolistically competitive industry, in the long run we can expect to see
A) the typical firm's economic profits expand as production becomes more efficient.
B) more firms entering the industry until economic profits are zero.
C) the typical firm producing at the minimum point on its ATC curve.
D) each firm expand its share of the total market.
B
You might also like to view...
Consider a firm that uses labor and capital to produce output x using a homothetic production technology that has increasing returns to scale when output lies between 0 and xA, constant returns to scale when output lies between xA, and xB, and decreasing returns to scale when output exceeds xB (where 0
What will be an ideal response?
Explain whether the statement, "Hillary Clinton was elected President of the United States in 2012," is a normative or positive statement
What will be an ideal response?
Investing in risky assets in the hope of earning profits is called speculation
a. True b. False Indicate whether the statement is true or false
Equity is the condition in which the economy is producing what people want at the least possible cost.
Answer the following statement true (T) or false (F)