In the long run, the economic profits of a monopolistically competitive firm
A) will tend to be larger than in the short run.
B) equal zero.
C) will be the average short-run profits earned in the last five years.
D) will be the same as in the short run.
B
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Kristine has a savings account at a bank. If the nominal interest rate she earns exceeds the rate of inflation, then her purchasing power increases over time
a. True b. False Indicate whether the statement is true or false
The real balance effect describes the change in
A) checking account balances that occur when the money supply increases or decreases. B) the value of physical assets (e.g., houses) that results from a change in the price level. C) the output producers produce as they attempt to balance their production in response to changes in consumers' demand. D) the value of cash holdings that results from a change in the price level. E) the balance of cash holdings that results from a change in the amount of income earned.
Which of the following factors of production is most likely to be variable in the short run?
A) land B) capital equipment C) labour D) entrepreneurship E) technology
Economic principles and models are tools for ascertaining ________ and _________ within an economic system.
Fill in the blank(s) with the appropriate word(s).