Under the conditions of monopolistic competition:
A. firm profits are higher in the long run than in the short run.
B. average costs of production are the same in the short run as they are in the long run.
C. economic profit is zero in the long run.
D. price equals marginal cost.
Answer: C
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If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately
A. 4%. B. -4%. C. -4.2%. D. 4.2%.
If a firm's short-run total cost curve lies above its total revenue curve at all output levels, the firm should
a. always shut down in the short run b. always operate in the short run c. operate in the short run if the maximum operating loss is less than its total fixed cost d. operate in the short run if the minimum operating loss is less than its total fixed cost e. operate in the short run if the average operating loss is less than its total fixed cost
A firm that has negative economic profits has accounting profits that are
A) zero. B) positive. C) negative. D) indeterminate without more information.
Nearly one in four Hispanic persons live in poverty.
Answer the following statement true (T) or false (F)