The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5.
B) producing 8 units and charging a price of $15.
C) producing 16 units and charging a price of $10.
D) producing 20 units and charging a price of $25.
B
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During the business cycle,
A) real GDP fluctuates around nominal GDP. B) nominal GDP fluctuates around real GDP. C) real GDP fluctuates around its trend. D) trend GDP fluctuates around real GDP. E) real GDP falls after the trough.
Which of the following is true?
A) The price charged by a monopolistically competitive firm is equal to the price charged by a perfectly competitive firm in the long run. B) The price charged by each firm in a monopolistically competitive market is equal in the long run. C) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a firm in a perfectly competitive market in the long run. D) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a monopolist in the long run.
In November 2008, the Fed began its first round of quantitative easing. In total, the Fed conducted ________ rounds of quantitative easing before ending the program in October 2014
A) 2 B) 3 C) 4 D) 5
Which of the following characteristics is essential if a good is to be efficiently provided by a market economy?
a. The good should be subject to overuse. b. The good should be subject to the free rider problem. c. The good should be a common resource. d. The good should be excludable and rival in consumption