In the long run in a monopolistically competitive market, a firm will, in theory,
A) earn economic profits.
B) suffer losses.
C) break even.
D) earn zero accounting profits.
Answer: C
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The value of an item expressed in today's dollars is known as
A) inflation. B) deflation. C) the nominal value. D) the real value.
The problem of moral hazard arises because
a. life is full of all sorts of risks. b. after people buy insurance, they have less incentive to be careful about their risky behavior. c. a high-risk person is more likely to apply for insurance than is a low-risk person. d. insurance companies go to great effort to avoid paying claims to their policy holders.
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp: A. has lower implicit costs, including a normal profit, than its explicit costs. B. is earning a normal profit but not an economic profit. C. is earning an economic profit. D. is suffering an economic loss, when implicit costs are considered.
Explain Microsoft Windows' monopoly positions in terms of network externalities
What will be an ideal response?