When monopolistically competitive firms earn ________ profits, other firms ________ the industry in the long run.
A. positive economic; exit
B. negative economic; exit
C. normal; exit
D. normal; enter
Answer: B
You might also like to view...
Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year
What are the implicit costs of her business? A) $14,000 B) $17,000 C) $21,000 D) $31,000
Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?
A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.
All these factors would shift the supply curve of tobacco, except
a. Bad weather b. Change in the price of tobacco c. Changes in the wages of agricultural workers d. A tax charged on the production of tobacco
Average revenue minus average total cost equals
a. total economic profit b. total accounting profit c. a normal profit d. economic profit per unit of output e. marginal cost