Exhibit 10-1 A monopolistic competitive firm
As represented in Exhibit 10-1, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A. zero.
B. $200 per day.
C. $1,000 per day.
D. $20,000 per day.
Answer: A
You might also like to view...
The above table shows the number of pencils or pens that could be produced by Don and Bob in an hour. This schedule shows that
A) Don has an absolute advantage in the production of pencils, and Bob has an absolute advantage in the production of pens. B) Bob has an absolute advantage in the production of pencils, and Don has an absolute advantage in the production of pens. C) Don has a comparative advantage in the production of both pencils and pens. D) Bob has a comparative advantage in the production of pencils.
This profit-maximizing (loss-minimizing) firm is making a profit or loss of about __________.
A. $480
B. $500
C. $800
D. -$450
Classicals argue that an adverse supply shock would
A. raise the natural rate of unemployment, but not the actual rate of unemployment. B. raise neither the natural rate of unemployment nor the actual rate of unemployment. C. raise both the natural rate of unemployment and the actual rate of unemployment. D. raise the actual rate of unemployment, but not the natural rate of unemployment.
The use of high leveraging by banks leads to the banking system's:
A. Competitiveness B. Instability C. Vital role in the economy D. Monopoly power