A price-taking firm and a monopoly firm are alike in that:
a. price equals marginal revenue for both
b. both maximize profits by choosing an output where marginal revenue equals marginal cost.
c. price exceeds marginal cost at the profit-maximizing level of output for both.
d. in the long run, both earn zero economic profits.
b
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A firm in long-run equilibrium under monopolistic competition will earn
A) zero economic profits because of free entry. B) positive monopoly profits because each sells a differentiated product. C) positive oligopoly profits because each firm sells a differentiated product. D) negative economic profits because it has economies of scale. E) positive economic profit if it engages in international trade.
Net worth and assets are the same
Indicate whether the statement is true or false
Signaling is when someone takes action to:
A. reveal private information about someone else. B. reveal one's own private information. C. find out the opportunity cost of acquiring more information. D. None of these statements is true.
What amount of money was appropriated by Congress for fiscal stimulus bill of 2009?
a. $225 billion b. $252 billion c. $700 billion d. $787 billion