A firm in monopolistic competition that is maximizing profit ________
A. always makes a positive economic profit in the short run
B. never needs to shut down because its price always exceeds minimum average variable cost
C. might, in the short run, sell at a price that is less than average total cost
D. shuts down temporarily if it incurs a loss equal to total variable cost
C In the case of answer C, the firm incurs an economic loss.
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The period of 1973 to 1980 can best be described as a time of
A. deflation. B. reflation. C. unflation. D. stagflation. E. disflation.
What is an economic model?
A) It is a description of an economic issue that includes all possible related information. B) It is a description of an economic issue based on official government information. C) It is a detailed version of some aspect of economic life used to analyze an economic issue. D) It is a simplified version of some aspect of economic life used to analyze an economic issue.
The structural deficit or surplus
a. shows the government where to make cuts in expenditures to follow the balanced budget requirement. b. reveals the complicated structure underlying government spending and tax policy. c. is the hypothetical deficit or surplus under current fiscal policies if the economy were operating near full employment. d. includes all government budgets-federal, state, and local.
If the September 11th terrorist attacks had not occurred, it is unlikely that the war in Iraq would have
A. been so protracted. B. uncovered so many weapons of mass destruction. C. divided Congress as it did. D. occurred at all.