Which of the following is true of monopoly but not true of perfect competition?
a. Firms can potentially earn economic profits in the short run
b. Total revenue is the product of price times the quantity sold.
c. Firms can potentially earn economic profits in the long run.
d. A profit-maximizing firm will shut down if price falls below the average variable cost.
c
You might also like to view...
Refer to the figure above. If the optimal number of machines rented is 100, the market rental price must be:
A) $3 per month. B) $4 per month. C) $5 per month. D) $7 per month.
Poor nations typically have a competitive advantage in agricultural goods because of
A. High productivity. B. Low labor costs. C. Entrepreneurial incentives. D. Plenty of land.
In order to maintain high prices, a cartel must get its members to
A. develop new sources. B. leave production unchanged. C. reduce production. D. increase production.
In 2007, which of the following U.S. firms showed the first indication of significant problems in the financial sector?
A. AIG B. Bear Stearns C. J.P. Morgan Chase D. Lehman Brothers