If a firm in monopolistic competition is earning an economic profit,
A) it is in the long run.
B) other firms can enter the market.
C) it can do so because it is "monopolistic" and other firms will have a hard time competing with it.
D) its average cost must exceed its marginal cost.
E) The question errs because firms in monopolistic competition cannot earn an economic profit.
B
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The price elastic portion of the linear demand curve lies:
a. b and c. b. above the point of unit elasticity. c. anywhere to the left of current market prices. d. below the point where total revenue is maximized. e. at the intersection with the supply curve.
Which of the following is not an interest-earning asset of commercial banks?
a. Required reserves. b. Checkable deposits. c. Customer savings accounts. d. All of the above are interest-earning assets of commercial banks. e. None of the above are interest-earning assets of commercial banks.