If profits in a monopolistically competitive market are positive, we can conclude that:
A. price is equal to average cost.
B. price is greater than average cost
C. the market is in long-run equilibrium.
D. price is less than average cost.
Answer: B
You might also like to view...
When the Fed reduces the real interest rate, which of the following does NOT increase?
A) consumption B) investment C) government purchases D) net exports
A monopoly earns the most profit by charging a price where demand is inelastic
a. True b. False Indicate whether the statement is true or false
To be considered employed, a person must have a full-time job
a. True b. False Indicate whether the statement is true or false
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At above full employment, the economy is producing more than potential output
c. At above full employment, unemployment would be below its natural rate. d. All of the above are true.