A monopoly firm can make economic profit in the long run. A firm in monopolistic competition cannot. What creates this difference?
What will be an ideal response?
The key to long-run economic profits is a barrier to entry. The monopoly firm has a barrier to entry that protects its economic profit from the entry of new firms. A monopolistically competitive firm's industry features easy entry and exit and so there is nothing to protect any economic profit.
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The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0. B) $5,000. C) $10,000. D) $15,000.
The principal econometric techniques used in measuring demand relationships are:
a. the standard deviation b. regression c. correlation analysis d. the coefficient of determination e. both b and c
Suppose your friends take you out for dinner on your birthday and you have a much better time than you would have had doing anything else. There is still an opportunity cost, even though they will not let you pay for anything
a. True b. False
Refer to the information provided in Table 25.2 below to answer the question(s) that follow.Table 25.2
Refer to Table 25.2. First Commercial Bank's excess reserves equal
A. $200,000. B. $600,000. C. $1,000,000. D. $1,500,000.