In the long run, the economic profits of a monopolistically competitive firm
A. will be the average short-run profits earned in the last five years.
B. will be the same as in the short run.
C. equal zero.
D. will tend to be larger than in the short run.
Answer: C
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Four candidates are running for president of their book club, which has a total of 36 members. The table below indicates the number of voters and their preferences
Determine the winner under the plurality-rule method, the Borda-count method (assigning 3 points to each first choice, 2 points to each second choice, 1 point to each third choice, and no points to each fourth choice), and the instant runoff method. Number of voters and their preferences 7 14 6 9 1st Choice Amy Byron Coco Dinesh 2nd Choice Coco Dinesh Amy Amy 3rd Choice Byron Amy Dinesh Coco 4th Choice Dinesh Coco Byron Byron
At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable c. quantity demanded exceeds the quantity supplied. d. none of the above
Consider the market for grapes. An increase in the wage paid to grape pickers will cause the
a. demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed. b. demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed. c. supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed. d. supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.
New classical economists stress that an increase in government expenditures financed by borrowing rather than taxes will
a. exert a strong expansionary impact on aggregate demand and real output. b. affect the timing of taxes but not their magnitude. c. lead to higher interest rates. d. undermine confidence and reduce the level of private saving.