These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph shown is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a monopolistically competitive firm that is:
A. earning negative economic profits.
B. making positive economic profits.
C. in long-run equilibrium.
D. All of these statements are true.
Answer: C
Economics
You might also like to view...
Market prices
A) are limited in their information content. B) contain all available information. C) contain only past information. D) none of these choices.
Economics
The optimal hiring rule is to employ labor up to the point where:
a. wage = MP. b. wage = MR. c. wage = MRP. d. wage = MFC.
Economics
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Economics
Majority-rule voting leads to logrolling.
Answer the following statement true (T) or false (F)
Economics