If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?
A) Demand decreases and becomes less elastic. B) Demand increases and becomes less elastic.
C) Demand increases and becomes more elastic. D) Demand decreases and becomes more elastic.
D
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Refer to Table 2-14. What is Scotland's opportunity cost of producing one guitar?
A) 0.25 motorcycles B) 4 motorcycles C) 12 motorcycles D) 16 motorcycles
Price elasticity of demand is measured by the percentage change in
a. income divide by the percentage change in price b. quantity demanded divided by the percentage change in income c. price divided by the percentage change in quantity demanded d. quantity demanded divided by the percentage change in price e. total revenue divided by percentage change in price
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:
A. $6,250. B. $5,750. C. $3,750. D. $4,250.
Refer to the given information. The current account items for Zippo are:
The plus items below are "export-type" entries and the minus items are "import-type" entries in the balance of payments for the hypothetical country of Zippo.
A. 1, 2, 3, and 4.
B. 1, 3, 4, 5, 7, and 9.
C. 6 and 8.
D. 1, 2, 4, 7, and 9.