In the long run, monopolistically competitive firms earn zero economic profits.
Answer the following statement true (T) or false (F)
True
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Based on the figure above, curve C is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) average variable cost curve. E) average fixed cost curve.
perfectly competitive firm with a random demand has an expected demand curve that is ________ its expected marginal revenue curve.
A) equal to B) exactly double C) less than D) greater than
Suppose Max values a concert ticket at $45 . Charles values the same concert ticket at $40 . The pre-tax price of a concert ticket is $30 . The government imposes a tax of $5 on each concert ticket, and the price rises to $35 . The deadweight loss from the tax is
a. $15. b. $10. c. $5. d. $0.