If ________, then a profit-maximizing, monopolistically competitive firm earns positive economic profits.
A. P = ATC
B. P < ATC
C. P > ATC
D. All of the above are possible.
Answer: C
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In a perfectly competitive market, technological advances bring ________ economic profits for producers and ________ lower prices for consumers
A) permanent; permanently B) permanent; temporarily C) temporary; permanently D) temporary; temporarily
How do changes in expectations, fiscal policy and monetary policy, and the world economy change aggregate demand and the aggregate demand curve?
What will be an ideal response?
Economists estimated that the cross-price elasticity of demand for beer and wine is -0.83 and the income elasticity of wine is 5.03. This means that
A) beer and wine are substitutes and wine is a luxury good. B) beer and wine are substitutes and wine is an inferior good. C) beer and wine are complements and wine is a luxury good. D) beer and wine are complements and wine is an inferior good.
Relations between rich and poor countries is most important in
a. Marx's view of capitalist development b.dualism c. dependency theory d. Rostow's stages of development e. none of the above