Monopolistically competitive firms:
A. realize normal profits in the short run but losses in the long run.
B. incur persistent losses in both the short run and long run.
C. may realize either profits or losses in the short run but realize normal profits in the long run.
D. persistently realize economic profits in both the short run and long run.
Answer: C
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The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total imports of cherries to the United States from other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
Make an argument for user charges being both efficient and equitable. What information can user charges provide us that free provision can not?
What will be an ideal response?
_____ allow an individual to buy a company's stock at a pre-determined price on or after a certain future date
a. Arbitrage b. Futures contracts c. Options d. Spot markets
Which of the following would not tend to lower the price of VCRs?
a. decreasing price of DVD players b. increasing price of video cassettes c. improvement in VCR production technology d. reduced price of raw materials used in making VCRs e. increasing price of pay-per-view movies on cable TV