If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will
a. continue to earn positive economic profits because successful advertising is one of the barriers to entry
b. earn zero economic profits because the government will begin to regulate the industry
c. earn negative economic profits because it won't be able to advertise indefinitely
d. earn zero economic profits because other firms will also begin to advertise
e. continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run
D
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The monetary and fiscal stimulus response to the Great Recession resulted in an immediate increase in real GDP
a. True b. False Indicate whether the statement is true or false
Because of its ___________ effects, inflation increases social and economic tensions.
Fill in the blank(s) with the appropriate word(s).
Giving the store clerk a $20 bill for a pair of earbuds priced at $20 is an example of money serving as a
A. medium of exchange. B. unit of accounting. C. store of value. D. standard of deferred value.
Refer to the above figure. Which panel represents the long-run supply curve for a constant cost industry?
A. Panel A B. Panel B C. Panel C D. Panel D