When a market is monopolistically competitive, the typical firm in the market is likely to experience a
a. positive profit in the short run and in the long run.
b. positive or negative profit in the short run and a zero profit in the long run.
c. zero profit in the short run and a positive or negative profit in the long run.
d. zero profit in the short run and in the long run.
b
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Export subsidies lead to
A) greater production of exportables and higher internal prices for these goods. B) greater production of exportables and lower internal prices for these goods. C) greater production of importables and higher internal prices for these goods. D) None of the above.
Given that the firm offers both the products would the chefs ever pay the full $100 for the high-end wok
a. Yes, because they value it at $100 b. No, because they value it at $70 c. No, because they can get a positive consumer surplus buying the no-name brand d. All of the above
Government attempts to lower, raise, or simply stabilize prices can:
A. shift the distribution of surplus. B. create unintended side effects. C. reduce efficiency of a market. D. All of these are true.
"There should be less discrimination against the elderly." This is an example of a
a. normative statement b. positive statement c. forecast d. hypothesis e. prediction