In the short run, a monopolistically competitive firm
A. never earns positive economic profits.
B. always earns positive accounting profits.
C. can earn positive, negative, or zero economic profits.
D. always earns positive economic profits.
Answer: C
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Refer to Figure 4-9. What area represents the deadweight loss after the imposition of the price floor?
A) F + G B) C + D + F + G C) C + D D) C + D + G
Total revenue
a. can be calculated directly from the demand curve. b. can be calculated directly from the average revenue curve. c. is found by multiplying price times quantity. d. All of the above are correct.
The Stability and Growth Pact (SGP) was a failure because of all of the following reasons, EXCEPT:
A) surveillance failure. B) weak punishment. C) once countries joined the Eurozone, enforcement of rules was impossible. D) consultations between the Federal Reserve and the ECB broke down.
Under monopolistic competition, entry to the industry is:
A. completely free of barriers. B. more difficult than under pure competition but not nearly as difficult as under pure monopoly. C. more difficult than under pure monopoly. D. blocked.