For any given firm in a monopolistically competitive market, the long-run economic profit tends to be __________ and firms operate to the ____________ of the minimum point on the average total cost curve.
a. positive; left
b. negative; right
c. negative; right
d. zero; left
Ans: d. zero; left
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In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?
A) littering on highways B) overharvesting of alligators in Louisiana C) poaching of elephants in Africa D) trees of one neighbor blocking a view of another
What is an example of a variable cost in a major league baseball franchise?
a) stadium rent b) manager's salary c) stadium maintenance d) ticket-takers' salaries
As in all other competitive markets price equals marginal cost in a market for a scarce, non-renewable resource that is traded in a competitive market
Indicate whether the statement is true or false
As increasing amounts of a good are produced, the marginal cost of production tends to
a. rise. b. fall. c. remain constant. d. change unpredictably.