Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Because the restaurant industry is considered monopolistic competition, it is expected that in the long run, restaurant franchise owners earn:
A. zero economic profits.
B. positive economic profits.
C. zero accounting profits.
D. negative accounting profits.
Answer: A
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You own shares in a well-managed and diversified company. If a booming economy decreases investors' concerns about market risk, then the price of your shares will ________, holding other factors constant.
A. decrease. B. not change. C. increase. D. either increase or decrease.
Ed's construction company has the following short-run cost function: q3 - 10q2 + 36q
a. What level of output will minimize the average cost? What is the AC at this point? b. Does the production process indicate diminishing returns? How can you tell?
Economists are often required to make unrealistic assumptions concerning the problems they are investigating.
Answer the following statement true (T) or false (F)
An oligopoly is a market where there are a handful of dominant firms. A type of oligopoly where there are only two firms is a duopoly.
Indicate whether the statement is true or false