The cost of producing each bottle of a certain brand of shampoo is $0.25. If the market for shampoo is monopolistically competitive and demand for shampoo is inelastic, a manufacturer who charges $0.35 for each bottle will ________
A) shut down production in the short run
B) exit the industry in the long run
C) earn an economic profit of $0.10 per bottle
D) earn a total revenue of $0.10 per bottle
C
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The bargaining power of buyers increases if
A) the input in question is not a critical component of production. B) there are wide variations in the quality of inputs from supplier to supplier. C) there are many large buyers. D) the input in question has few substitutes.
Can a country have a trade deficit forever?
What will be an ideal response?
In a competitive economy, workers will be paid according to their
A) status. B) age. C) marginal productivity. D) need.
If MUx/Px > MUy/Py, then
A. X is more expensive than Y. B. Y is more expensive than X. C. spending a dollar less on X and a dollar more on Y increases utility. D. spending a dollar less on Y and a dollar more on X increases utility.