Use the above figure. When it maximizes its economic profits, the monopolistically competitive firm depicted in the figure
A. must increase output to reduce the ATC.
B. is earning an accounting profit.
C. is earning an economic profit.
D. is earning an economic loss.
Answer: D
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Government spending can be financed by all of the following, except:
a. personal income taxes. b. investment spending. c. government borrowing. d. money creation. e. excise taxes.
If the inflation rate is 2 percent and nominal wages increase by 1 percent, what happens to real wages?
a. They rise by 1 percent. b. They fall by 1 percent. c. They remain constant. d. They fall by 2 percent. e. They rise by 3 percent.
Real GDP is the value of all __________ goods and services produced in a given year in __________ prices
A) intermediate; that year's B) intermediate; base-year C) final; that year's D) final; base-year
The Federal Reserve Bank of New York is unique from other Reserve banks because it:
A. is where the Federal Reserve System's portfolio is managed. B. is the only regional Bank that serves just one state. C. is the oldest and therefore the largest. D. is the only regional Bank located in a financial center.