In the long run, Bubba's Baby Boutique, a monopolistically competitive firm,
a. earns zero normal profit but positive economic profit
b. earns normal profit but zero economic profit
c. earns normal and economic profit
d. earns zero normal and economic profit
e. might earn any level of economic profit; no level is guaranteed
B
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Holding all else constant, a decrease in the real interest rate on Mexican assets will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800If Giovanni produces 40 pounds of green beans and Jorge produces 80 pounds of corn, then the total amount of green bean production equals ________ and the total amount of corn production equals ________. If Giovanni and Jorge specialize in their respective low-cost good, then the total pounds of green bean production equals ________ and the total pounds of corn production equals ________.
A. 200, 100; 320, 160 B. 100, 200; 160, 320 C. 100, 200; 320, 160 D. 200, 100; 160, 320
During the 1990s, the nominal price of crude oil ____ and the real price ____
a. leveled off; fell b. fell; leveled off c. rose; fell d. fell; rose
If two investments are uncorrelated:
A. there is no benefit from diversification. B. there is no benefit to hedging. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.