Which of the following is true about a monopolistically competitive firm?
a. It can earn an economic profit in the short run, but not the long run.
b. It can earn an economic profit in the short run and the long run
c. It can earn an economic profit in the long run, but not the short run
d. It cannot earn an economic profit in either the short or long run
a
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In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars
Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's. A) greater; less B) less; greater C) less; less D) greater; greater
To avoid driving a natural monopolist into bankruptcy, regulatory commissions:
a. allow the monopolist to enjoy an economic profit. b. do not allow the monopolist to make an accounting profit. c. subsidize the monopolist to help it break even. d. allow the monopolist to earn a fair rate of return. e. allow the monopolist to temporarily shut down.