In the short run, a monopolistically competitive firm
A) always earns positive economic profits.
B) never earns positive economic profits.
C) can earn positive, negative, or zero economic profits.
D) always earns positive accounting profits.
C
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Barton & Matthews Corp, a law firm, announces its acquisition of Fronton Corp Which of the following is likely to occur as a result of this acquisition? a. The value of the Herfindahl-Hirschman Index for the legal services industry will decrease. b. The value of the Herfindahl-Hirschman Index for the legal services industry will increase. c. The market share of each firm in the legal services
industry will increase. d. The market share of each firm in the legal services industry will decrease.
Doubling the future value will cause:
A. the interest rate, i, to double. B. the present value to fall by half. C. the present value to double. D. no change to present value, only the interest rate.
For national security reasons a government decides that all of its base metal industry should not be located in the same geographical region, as it presently is
The government decides to allocate production quotas to firms in different parts of the country, but does not restrict in any way the transactions between consumers and base metal producers. This scheme is A) efficient as consumers still buy from whoever they like. B) efficient as those consumers who value base metals the most can purchase them. C) likely to be inefficient as some of the industry's output is not produced by the firms with the lowest cost. D) likely to be inefficient as the scheme will require subsidies to work. E) efficient as learning by doing effects will be strongest in the firms set up in new geographical regions.
Ceteris paribus, a decrease in the price of a good will cause the
a. quantity demanded of the good to decrease. b. quantity supplied of the good to increase. c. producer surplus derived from the good to decrease. d. supply of the good to decrease.