Excess capacity and inefficiency result under monopolistic competition.
Answer the following statement true (T) or false (F)
True
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A bank's balance sheet can show a negative net worth and yet its income statement can show a profit for the year
a. True b. False
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp: A. has lower implicit costs, including a normal profit, than its explicit costs. B. is earning a normal profit but not an economic profit. C. is earning an economic profit. D. is suffering an economic loss, when implicit costs are considered.
If you regularly spend $100 a month on gasoline and the price of gasoline doubles, your purchasing power has
A. became stable. B. increased. C. decreased. D. remained constant.
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total costs are
A. $200. B. $240. C. $350. D. $360.