If there are zero implicit costs, accounting profits _________economic profits
a. Are greater than
b. Are equal to
c. Are less than
d. Have no inherent relationship to
b
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How is a monopolistically competitive firm similar to a perfectly competitive firm?
A) Both will observe entry into the industry if economic profit is positive. B) Both produce where average total cost equals marginal cost. C) Both make a positive economic profit in the long run. D) Both produce a homogeneous good.
When import restrictions are placed on a good, and as a result the price of the good increases, the demand curve for that good will
A) shift rightward. B) shift leftward. C) become steeper. D) be unaffected.
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response, which reduces the law's effectiveness. D) regulatory lag.
For a profit-maximizing monopolist,
a. P > MR = MC. b. P = MR = MC. c. P > MR > MC. d. MR < MC < P.