In the long run, a firm in a perfectly competitive market operates
a. at its efficient scale, and a monopolistically competitive firm operates at its efficient scale.
b. at its efficient scale, and a monopolistically competitive firm operates with excess capacity.
c. with excess capacity, and a monopolistically competitive firm operates with excess capacity.
d. with excess capacity, and a monopolistically competitive firm operates at its efficient scale.
b
You might also like to view...
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 If Island Bikes charges a single price to all of its customers, then what will be its daily economic profit?
A. $26 B. $36 C. $27 D. $33
The largest percentage of U.S. national debt to GDP occurred during
A. World War II. B. The Civil War. C. The Great Depression. D. World War I.
Social Security annual benefits to retirees
A. Are higher for high-income workers and lower for low-income workers. B. Are equal to the retirees' average annual salaries when they were working. C. Are higher for low-income workers and lower for high-income workers. D. Do not depend on prior earnings.
Which of the following is an example of money functioning as a medium of exchange?
A) Walmart accepting your $20 when you buy a Blu-ray. B) Apple pricing an iPhone at $299. C) Bank of America paying you 3 percent on your saving account. D) You saving your spare change in a jar before depositing them in your savings account.