A reduction in a monopolist's fixed costs would
a. decrease the profit-maximizing price and increase the profit-maximizing quantity produced.
b. increase the profit-maximizing price and decrease the profit-maximizing quantity produced.
c. not effect the profit-maximizing price or quantity.
d. possibly increase, decrease or not effect profit-maximizing price and quantity, depending on the elasticity of demand.
c
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In the long run, a monopolistically competitive firm:
a. will earn normal profits. b. will earn excess profits. c. will earn no profits. d. will produce where marginal cost equals price.
The dependence on the export of one or two primary products for a majority of the revenue from exports is most severe in countries in
(a) South Asia. (b) East Asia. (c) Sub Saharan Africa. (d) Latin America.