How does a firm in monopolistic competition determine its price and quantity? What type of profit can it make in the short run and the long run?
What will be an ideal response?
The firm produces where its marginal cost equals its marginal revenue. Then the price is determined from the demand curve and is the highest price at which people will buy the quantity produced. The firm can make a positive economic profit, zero economic profit, or incur an economic loss in the short run. In the long run, the firm cannot make an economic profit; it can only make zero economic profit, that is, its owners make a normal profit.
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Which of the following can be a source of comparative advantage?
A) Prices of finished goods B) The demand for goods in the global market C) Climatic conditions D) The demand for the goods in the domestic market
What is the most innovative feature of the International Criminal Court (ICC)?
a. Its focus is on the individual criminal, not the state. b. Its authority affects every nation on earth, not just voluntary members. c. Its decisions are made by an international jury, not a panel of judges. d. Its goal is to safeguard human rights, not punish criminal behavior.
A decrease in the value of money __________ the quantity of money demanded. On a graph with the value of money on the vertical axis this effect on the value of money on quantity demanded is shown as ____________
Fill in the blank(s) with correct word
If market participants believe next year's corn crop is likely to be unusually large:
A. it will be impossible to find someone to take the long position in a futures contract. B. the current spot market price of corn is likely to be above the futures price of corn. C. the current spot market price of corn is likely to be below the futures price of corn. D. it would be impossible to find someone to take the short position in a futures contract.