In monopolistic competition, firms can make an economic profit in
A) the short run and in the long run.
B) the short run but not in the long run.
C) the long run but not in the short run.
D) neither the long run nor the short run.
B
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A supply curve slopes upwards because
a. the higher the price the lower the quantity that the sellers are willing to supply b. the higher the price the higher the quantity that the sellers are willing to supply c. the quantity supplied in insensitive to price d. an increase in price brings the quantity sold down to zero
Suppose pizzas are the only good and people have homothetic preferences. The supply of pizzas today is perfectly inelastic and determined solely by people's endowments. Which of the following would cause the interest rate to rise?
a. A 50% increase in pizza production, this year and throughout the future. b. A 50% increase in this year's pizza production that is not expected to affect future harvests. c. An expected 50% increase in future pizza production. d. A hurricane that permanently destroys 50% of all pizza parlors.
Given the following information, how many people are in the labor force? U.S. population, 250 million; employed, 135 million; unemployed, 5 million; discouraged workers, 4 million; collecting unemployment insurance, 3 million.
What will be an ideal response?
Use the above figure. When it maximizes its economic profits, the monopolistically competitive firm depicted in the figure
A. must increase output to reduce the ATC. B. is earning an accounting profit. C. is earning an economic profit. D. is earning an economic loss.