A representative firm in monopolistic competition will tend to make economic profits:
A. or losses in the short run, but the firm will break even in the long run.
B. in the short run and long run.
C. or losses in the short run, but the firm will make economic profits in the long run.
D. and losses in the short run and long run.
Answer: A
You might also like to view...
Which of the following is not true of Lindahl prices for collective consumption goods?
a. Lindahl pricing might be useful in achieving political agreement on the proper amount of the public good to be produced. b. Lindahl prices are set so the marginal benefit they receive from the public good is equal to the marginal cost. c. Lindahl prices are difficult to calculate in practice. d. Lindahl prices are necessary for economic efficiency.
Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world
a. True b. False Indicate whether the statement is true or false