Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm's demand curve will shift to the right if it stays in business in the long run.
B) The firm will exit the industry if it continues to suffer economic losses.
C) The firm will break even if its stays in business in the long run.
D) In the long run, the firm will be able to charge a price that is greater than its average total cost.
Answer: D
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Which of the following demonstrates the law of supply?
a. When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts. b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When ketchup prices rose, ketchup sellers decreased their quantity supplied of ketchup.
How big is the labor force? # of employment 800 # of unemployment 200 Not in labor force
A. 250 B. 800 C. 1000 D. 1050 E. 850
The incentives built into nearly all welfare programs
A. encourage family planning. B. encourage marriage. C. encourage work. D. none of the above.
Combined, the consumer surplus and producer surplus at equilibrium is
A. as big as it can get. B. typically negative. C. lower than it would be at prices below equilibrium. D. lower than it would be at prices above equilibrium.