In the long run, the economic profits of Hoot's Chicken 'n' Ribs, a monopolistic competitor, are:
a. not eliminated, because competition is not perfect.
b. not eliminated, because the demand curve slopes downward.
c. eliminated due to firms entering the industry.
d. eliminated due to firms leaving the industry.
e. not eliminated, because firms cannot enter the industry.
c
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If Project X has a cost of $6 and provides a benefit of $10, and Project Y has a cost of $25 and provides a benefit of $27, which of the following statements is true?
A) An individual can optimize by choosing Project X. B) An individual can optimize by choosing Project Y. C) Switching from Project X to Project Y increases net benefit by $2. D) Switching from Project Y to Project X decreases net benefit by $2.
For a risk averse person,
a. the pleasure of winning $1,000 on a bet exceeds the pain of losing $1,000 on a bet. b. the pain of losing $1,000 on a bet exceeds the pleasure of winning $1,000 on a bet. c. the utility function exhibits the property of increasing marginal utility. d. the utility function gets steeper as wealth increases.
Under a fixed exchange rate regime, suppose there is a reduction in housing wealth that causes a reduction in consumption. This wealth-induced reduction in consumption will cause
A) a reduction in investment. B) an increase in net exports. C) a reduction in imports. D) all of the above E) none of the above
Two identical firms that share a market and produce a homogeneous good will find which of the following market outcomes LEAST desirable?
A) Bertrand Oligopoly B) Cournot Oligopoly C) Cartel D) All are equally preferable.