If a firm is operating in a monopolistically competitive market, then in the long run:
A. the firm will earn a zero economic profit.
B. the firm will maximize its profit by producing the output level at which the average cost is minimized.
C. the firm will maximize its profit by producing the output level at which the marginal revenue is minimized.
D. All of these
Answer: A
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In the figure above, if no one owns the lake, the market does what?
A) overproduces 120 tons of pesticide B) underproduces 120 tons of pesticide C) overproduces 60 tons of pesticide D) produces the efficient quantity of pesticide
Comparative advantage is determined by
A) actual differences in labor productivity between countries. B) relative differences in labor productivity between countries. C) Both A and B. D) Neither A nor B.
At a price of $20 each, the demand for t-shirts from a group's fundraising activity is unit elastic. Thus, the group's total revenue from selling t-shirts ________ at a price of $20 each.
A. will equal $0 B. reaches its maximum C. will equal $1 D. reaches its minimum
Based on the graph showing the effective federal funds rate, in what context did the downturn in interest rates after the 2001 recession occur?
a. Interest rates were higher than they were at the start of previous downturns.
b. Interest rates were lower than they were at the start of previous downturns.
c. Interest rates were at an all-time low before the start of the downturn.
d. Interest rates were at an all-time high before the start of the downturn.