Which of the following market structures is (are) capable of earning positive economic profits in the long run?
A) monopoly
B) oligopoly
C) monopolistic competition
D) Both A and B.
D
You might also like to view...
In which of the following ways can national savings be calculated?
A) By deducting net exports and government expenditure from total output B) By deducting consumption and investment from total output. C) By deducting consumption and government expenditure from total output D) By deducting investment and government expenditure from total output
At each value of the domestic interest rate, increases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. decrease; increase; decrease C. increase; increase; decrease D. increase; increase; increase
The price of an airline ticket from Denver to Washington, D.C. costs $600. A bus ticket costs $150. Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than
What will be an ideal response?
The reason a profit-maximizing natural monopolist cannot set price equal to marginal cost is that it would:
A. then be forced to produce more than it could sell. B. suffer losses since price would be less than average cost. C. earn excessive profits, which would attract new firms into the market. D. then be forced to produce more than the socially optimal level of output.