In which of the following market structures can firms earn economic profits in the long run?
a. perfect competition
b. monopolistic competition
c. monopoly
d. Both b and c are correct.
c
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Most economists believe that the best monetary policy target is
A) the money supply. B) an interest rate. C) the discount rate. D) total bank reserves.
A market economy benefits from market power
A) if firms with market power do research and development with the profits earned. B) if market power gets so bad the government creates public enterprises. C) if the majority of the population are entrepreneurs. D) under no circumstances.
Which of the following statements is true?
a. b and d. b. Total revenue is maximized when elasticity is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. Demand for milk is more elastic than demand for football tickets. e. Demand for 5-cent candy is more elastic than demand for sweaters.
Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides
a. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? b. How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? c. If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?