Firms in an oligopoly market can potentially earn economic profits: a)in the short run, but not the long run
a. In the short run, but not the long run.
?b. In the long run, but not the short run.
?c. In both the short run and long run
?d. In neither the short run nor the long run
?Answer: c. In both the short run and long run
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Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?
A) $2,400 B) $840 C) $120 D) $60
An incumbent announces it will significantly increase output in the next period, but only has contracts for the amount produced this period. The announcement is a
A) credible threat. B) non-credible threat. C) commitment. D) mixed strategy.
If a firm shuts down in the short run
A) it will lose its operating costs. B) its losses will be equal to zero. C) it will incur its fixed costs. D) it will incur only its explicit costs.
If two persons trade, one must gain at the expense of the other
a. True b. False Indicate whether the statement is true or false