Which of the following will not generally be true of a monopolistic competitor operating in the long run?
a. price greater than minimum average total cost
b. price equal to average total cost
c. marginal revenue equal to marginal cost
d. positive economic profits
d
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Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Acme Manufacturing: TC = 100 + 3Q. Generic Industries: TC = 500 + 3Q. Which of the following statements is true?
A. Marginal cost at each firm depends on the level of output. B. Acme and Generic have the same marginal cost. C. Acme has greater economies of scale than does Generic. D. Acme has a lower marginal cost than does Generic.
If people behave according to rational expectations theory, people would expect the rate of inflation this year to be:
a. the same as last year. b. zero, regardless of the rate last year. c. the rate based on predictable monetary and fiscal policies. d. All of these.
A speculator is someone who
a. buys a good for immediate consumption b. buys a good for a low price, hoping to sell it in the future for a higher price c. buys a good for one price and hopes to sell it for a lower price in the future d. sells a good for a lower price than its original purchase price e. sells all of his or her merchandise and then exits the market
Invention alone does not explain why free market societies have experienced such rapid rates of economic growth
a. True b. False Indicate whether the statement is true or false