The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC)
Indicate whether the statement is true or false
False. Although the firm is a price setter entry in the long run will drive price down until no economic profit exists.
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The most important of the Federal Reserve district banks is the:
A. Chicago bank. B. Boston bank. C. New York bank. D. San Francisco bank.
Competition is present when
What will be an ideal response?
The business cycle peak associated with the Great Recession was in
A. November 2001 when the prior expansion started. B. September 2008, when the Great Recession became very severe. C. June 2009, when the Great Recession ended. D. December 2007 when the Great Recession started.
Price-discriminating firms charge higher prices to those who
A. Have greater incomes. B. Have many substitutes available to them. C. Want the product less. D. Have lower price elasticities of demand.