Firms in monopolistic competition would
A) persistently realize economic profits in both the short and long run.
B) may realize economic profits in the long run and normal profits in the short run.
C) tend to incur persistent losses in both the short and long run.
D) tend to realize economic profits in the short run and normal profits in the long run.
D
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Positive statements can contain
A) opinions and conditions. B) facts and predictions. C) a mixture of facts and opinions. D) logical arguments mixed with statements of opinion.
If the government is successful in cutting the economic pie into more equal slices, than it is quite possible that a. the pie gets larger
b. the pie gets smaller. c. it increases the reward for working hard, resulting in people producing more goods and services. d. none of the above.
Refer to the data. If product price is $45, the firm will:
A. shut down.
B. produce 4 units and realize a $120 economic profit.
C. produce 5 units and realize a $15 economic profit.
D. produce 6 units and realize a $100 economic profit.
The effect of an import quota is
A) to shift the supply curve up by the amount of the quota. B) to lead to a decrease in demand. C) to make the supply curve vertical at the amount of the quota. D) to make the supply curve horizontal at the amount of the quota.