If a firm is operating in a monopolistically competitive market, then in the long run:
A. the firm will earn a zero economic profit.
B. the firm will maximize its profit by producing the output level at which the average cost is minimized.
C. the firm will maximize its profit by producing the output level at which the marginal revenue is minimized.
D. All of these
Answer: A
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Refer to the table above. If countries were to trade along the lines of absolute advantage
A) A would export X to B. B) B would import Y from A. C) neither country would want to trade. D) More information is needed to determine the pattern.
Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?
a. Great Britain b. China c. Australia d. France
The primary method for controlling the money supply in the United States is to limit the:
A. Amount of currency that is printed.
B. Amount of money that is spent by changing income transfers.
C. Amount of money that is spent by changing tax policy.
D. Volume of loans the banking system can make.
An important problem with corporations is
A) the inability of the government to control and tax the firms. B) the possibility of large liabilities for the owners. C) the separation of ownership and control. D) the difficulties with raising financial capital.