In the long run, monopolistically competitive firms make zero economic profit because of
A) excess capacity.
B) product variety.
C) easy entry and exit.
D) government regulation.
C
You might also like to view...
? PriceQuantity Demanded Quantity Supplied $101,000 5,500 92,0005,00083,0004,50074,0004,00065,0003,50056,0003,00047,0002,50038,0002,00029,0001,500110,0001,000? Refer to Table 4-1. What is the equilibrium price in the example above?
A. $9 B. $8 C. $7 D. $6 E. $5
How does the existence of the fringe alter the price and output in an oligopoly market?
Recessions in Canada and Mexico would cause
a. the U.S. price level and real GDP to rise.
b. the U.S. price level and real GDP to fall.
c. the U.S. price level to rise and real GDP to fall.
d. the U.S. price level to fall and real GDP to rise.
Suppose that 75 percent of a cigarette tax is borne by consumers. If the supply elasticity is 1, the demand elasticity is equal to:
A. 1/2. B. 1. C. 1/3. D. 1/4.