Since the firm in the above figure is operating in a monopolistically competitive industry, in the long run we can expect to see
A) the typical firm's economic profits expand as production becomes more efficient.
B) more firms entering the industry until economic profits are zero.
C) the typical firm producing at the minimum point on its ATC curve.
D) each firm expand its share of the total market.
B
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The section of the marginal cost curve that lies above the average variable cost curve is
A) a perfectly competitive firm's supply curve. B) a perfectly competitive firm's average total cost curve. C) a perfectly competitive firm's total fixed costs curve. D) irrelevant to the firm because it never produces at any point along this curve.
Compared to the no-trade situation, when a country imports a good:
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, domestic producers lose an equal amount.