In the short run, a monopolistically competitive firm can earn
A) positive profits only.
B) zero profits only.
C) zero or positive profits only.
D) zero, positive or negative profits.
D
You might also like to view...
When crowding out occurs in an economy, it can reduce expenditures for
A. business investments. B. both consumer purchases and business investments. C. consumer purchases. D. government purchases.
In the short run, a profit-maximizing firm's decision to produce should be guided by whether
A) its total revenue exceeds its fixed cost. B) its total revenue covers its variable cost. C) it makes a profit. D) its marginal profit is maximized.
For a competitive firm, the marginal revenue product is:
A. always positive and nears zero as quantity increases. B. always negative and nears zero as quantity increases. C. zero when profits are maximized. D. decreasing eventually as quantity increases.
The "real burden" of the debt is directly related to
A. The idea of opportunity cost. B. How transfers redistribute income. C. The relationship between the Treasury and the Federal Reserve System. D. The difference between internally held debt and externally held debt.