Use the above figure. The total profit earned by the monopolistically competitive firm is
A) +$300.
B) +$15.
C) -$15.
D) $0.
B
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The United States economy ______________ operates on its production possibility curve.
A. Always B. Sometimes C. Never
The marginal social cost curve lies below the marginal private cost curve, with the vertical difference between the two curves representing the marginal external cost
Indicate whether the statement is true or false
Say's law states that supply creates its own demand because
A. there is always a buyer for every good produced. B. supply prices are always equal to demand prices. C. prices are such that, in the short run, producers know exactly how much to produce. D. the act of producing creates an income sufficient to purchase all that is produced.
If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the multiplier in the economy is:
A. 4. B. 5. C. 3.33. D. 2.5.