The absence of freedom of entry and exit is key to fact that there is no pressure for economic profit to go to zero under
A. perfect competition and monopolistic competition.
B. oligopoly and monopoly.
C. monopoly and monopolistic competition.
D. monopoly and Perfect competition.
Answer: B
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If the income elasticity of demand for a good is zero, then
a. the goods inferior. b. the good is normal. c. the good violates the Law of Demand. d. consumption of the good does not change as income changes.
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The maximum economic profit this firm can make equal equals
A) $0. B) $80. C) $120. D) $160.
Why would it be economically inefficient for a firm to charge the price of a good greater than its marginal cost?
What will be an ideal response?
Refer to Exhibit 2-5. Which of the following labeled points are productive efficient?
 ANSWER 6.png)