A major difference between a monopoly and perfect competition is that monopolies can earn an economic profit in the long run and a perfectly competitive firm cannot.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Total state and local government spending in 2007 was
a. less than $100 billion b. approximately $500 billion c. nearly $1.9 trillion d. approximately $10 trillion e. more than $25 trillion
Which of the following policies should not be used to close a recessionary gap?
A. Increases in government spending B. Tax cuts C. Increases in transfer payments D. An income tax surcharge
Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B, and each has a cost function TC = 2 + Q. Compare the firms' profits if they behave as Cournot duopolists with their profits if they form a cartel and share the market
What will be an ideal response?
A competitive firm maximizes profit at an output level of 500 units, market price is $24, and ATC is $24.50. At what range of AVC values for an output level of 500 would the firm choose not to shut down?
a. AVC > $24 b. AVC = $24 c. AVC < $24 d. cannot be determined from the given information