Refer to the above figure. Which of the following statements about panel D in the figure is TRUE?
A. The figure is in error since it has marginal cost intersecting the ATC curve at a point other than the minimum of ATC.
B. The figure is in error since it doesn't show the monopolistic competitor making profits in the long run.
C. The figure represents a long-run equilibrium for a monopolistic competitor.
D. The figure represents an industry long-run equilibrium for monopolistic competition.
Answer: A
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The value of a human life
A. can be estimated by potential future earnings. B. can be subjected to cost-benefit analysis. C. is an intangible that is hard to price. D. all of these answer options are correct.
Aunt Rose owned a dress shop on 81st Street and Broadway in Manhattan, selling limited-edition dresses to wealthy clients. One day, her landlord tripled her rent. What effect would this have on her dress price in the short run, assuming she is following the rules of profit maximization?
Cash distributions made by government to individuals when no good or service is received in exchange are known as __________.
a. poverty payments b. taxes c. transfer payments
Figure 10-8
Figure 10-8 illustrates a period of
a.
low unemployment and high inflation.
b.
low unemployment and low inflation.
c.
high unemployment and high inflation.
d.
high unemployment and low inflation.