A monopolistic competitive firm:
a. will always earn monopoly profits.
b. will never earn monopoly profits.
c. may earn monopoly profits in the short run.
d. may earn monopoly profits in the long run.
Ans: c. may earn monopoly profits in the short run.
Economics
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When demand increases,
a. consumers are willing and able to purchase more of the good at every price b. consumers are willing and able to purchase less of the good at every price c. there is a movement to the right along the demand curve d. this is referred to as a change in quantity demanded e. the price will tend to fall
Economics
If a firm has an accounting profit of $2,350,000 and implicit costs totaling $150,000 . then its economic profit equals
a. $2,350,000 b. $2,500,000 c. $2,200,000 d. $150,000 e. $2,000,000
Economics