The short-run equilibrium for a monopolistically competitive firm is at P = $28.47, ATC = $22.13, and MC = MR = $17.47 . Which of the following is true?
a. Per-unit profit is $11.
b. Additional firms will be attracted into the industry.
c. The firm could raise price and increase profits.
d. The firm could lower price and increase profits.
e. Average cost must be rising.
b
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Transfer payments are an injection into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
If the supply for loanable funds shifts to the left, then the equilibrium interest rate
a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. rises and the quantity of loanable funds falls. d. falls and the quantity of loanable funds rises.
An advance in technology which increases labor productivity will shift the:
A. labor demand curve to the left. B. MRP curve to the left. C. MP curve downward. D. labor demand curve to the right.
Answer the following statements true (T) or false (F)
1. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants. 2. Economics can be defined as the study of choices. 3. The United States has an abundance of resources and thus does not face the problem of scarcity. 4. The standard of living in most countries in the past has risen primarily as a result of a more skilled workforce and better machinery and equipment.