New firms enter a monopolistically competitive market structure in the long run if the price charged by the existing firms in the short run ________
A) exceeds the average total cost of production
B) equals the average fixed cost of production
C) equals the average variable cost of production
D) equals the price charged in a perfectly competitive market
A
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Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the accounting profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
If the government imposes a price floor above the market equilibrium price, then:
a. b and e. b. there will be excess supply. c. there will be excess demand. d. consumers will benefit. e. producers will benefit.
During a recession, which of the following will be true?
a. The actual rate of unemployment will be lower than the natural rate. b. Actual GDP will be lower than potential GDP. c. The employment/population ratio will increase substantially. d. Actual inflation will be higher than was anticipated.
People decide how much schooling to receive based on
A. the marginal rate of return to schooling. B. their ability to succeed in education programs. C. their discount rate. D. the present value of expected future earnings. E. All of the above factors influence how much schooling one receives.