In the long run, a monopolistically competitive firm
A) earns zero economic profit.
B) produces at minimum average cost.
C) operates at full capacity.
D) All of the above.
A
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Recency bias refers to a psychological bias whereby people believe that recent past trends and patterns will continue in the future
How would recency bias explain why investors chase returns? Does return-chasing lead investors to realize a higher rate of return on investments?
A natural monopoly is characterized by the fact that its average costs increase rather than decrease when its output expands
a. True b. False Indicate whether the statement is true or false
What is a situation that makes the market behave inefficiently?
What will be an ideal response?
Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. When PI = $40 and F = 50, the INVERSE supply function is
A. P = -36.667 + 0.1667Qs. B. P = 220 + 0.1667Qs. C. P = 220 + 6Qs. D. P = -220 + 6Qs.