The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________
A) shut down production in the short run
B) exit the industry in the long run
C) incur a loss in the short run
D) earn zero economic profits in the short run
D
You might also like to view...
Suppose a nation has a total population of 100,000,000. Out of that, 70% are in the labor force and 65% of the population is employed. What is the nation's unemployment rate?
A) 5.0% B) 7.1% C) 7.7% D) 30.0%
The Medicare tax is applied only to the first $87,000 of income
a. True b. False
In the United States the distribution of income is relatively unequal, and output is relatively high, while in the former Soviet Union the distribution of income was more equal and output per worker was much lower. Give one possible explanation for this phenomenon
Which of the following would cause the demand for mathematicians to increase?
a. a decrease in the productivity of mathematicians. b. an increase in the wage of mathematicians. c. an increase in the productivity of mathematicians. d. an increase in the productivity of physicists.