In the above figure, the firm is a monopolistically competitive firm. In the long run, its economic profit will be
A) zero.
B) between zero and $50 per day.
C) greater than $50 per day.
D) some amount that cannot be determined without more information.
A
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If the short-run average variable cost of production for a firm is decreasing, then it follows that
A. average variable cost must be greater than marginal cost. B. marginal cost must be decreasing. C. average variable cost must be greater than average fixed cost. D. average fixed cost must be constant.
In a simple circular flow diagram, who supplies factors of production in markets and who buys these factors of production? Who supplies goods and services in markets and who buys these goods and services?
What will be an ideal response?
The break-even quantity is
a. Fixed Costs/Price b. Fixed Costs/Marginal Cost c. Fixed Costs/(Price – Marginal Costs) d. Contribution Margin/Fixed Costs
Under a fixed exchange rate regime, the central bank must act to keep
A) P = P. B) the real exchange rate fixed. C) i = i. D) E = 1. E) none of the above