Technological change brings a ________ to firms that adopt the new technology
A) permanent economic profit
B) temporary economic profit
C) permanent economic loss
D) temporary economic loss
E) temporary normal profit
B
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The goal of product differentiation and advertising in monopolistic competition is to make
A. price more of a factor and product differences less of a factor in consumer purchases. B. price less of a factor and product differences more of a factor in consumer purchases. C. the firm productively efficient even if it is not allocatively efficient. D. the firm allocatively efficient even if it is not productively efficient.
A monopolistic competitor shuts down production in the short run if ________
A) marginal revenue equals marginal cost B) marginal cost equals average cost C) total revenues do not cover variable costs D) total revenues do not cover fixed costs
Which of the following could be threatening to an existing monopoly structure?
a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete
A market equilibrium:
A. is never socially optimal. B. might not maximize total economic surplus. C. is socially optimal. D. leaves unexploited opportunities for individuals.