The market for eyeglasses is monopolistically competitive. It follows that firms in the eyeglass industry:
a. could earn economic profit in long-run equilibrium
b. could earn economic profit in short-run equilibrium.
c. charge a price equal to marginal cost.
d. charge a price equal to the minimum average total cost.
b
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Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of
A) microeconomics. B) social interest versus self-interest. C) macroeconomics. D) why to produce. E) scarcity.
The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then
A) the market is in equilibrium. B) there is a shortage and the price of t-shirts will rise. C) there is a shortage and the price of t-shirts will fall. D) there is a surplus and the price of t-shirts will fall. E) there is a surplus and the price of t-shirts will rise.