In the long run, the economic profits of a monopolistically competitive firm
A) will tend to be larger than in the short run.
B) equal zero.
C) will be the average short-run profits earned in the last five years.
D) will be the same as in the short run.
Answer: B
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The data in the table above are the U.S. balance of payments. What is the current account balance?
A) $0 B) $150 billion C) -$100 billion D) -$150 billion
A concern about crowding out caused by increased government borrowing is that:
a. interest rates on private borrowing fall. b. lower rates of economic growth can result from a decline in business investment spending. c. the federal government may default on its loans. d. foreign lenders find it less attractive to help finance federal deficits.
According to the benefits principle, it is fair for people to pay taxes based on their ability to shoulder the tax burden
a. True b. False Indicate whether the statement is true or false
You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will earn an economic profit if the return on your investment is
A. between 0 and 6%. B. 6%. C. greater than 6%. D. only greater than 10%.