In the short run, a monopolistically competitive firm can earn
A) positive profits only.
B) zero profits only.
C) zero or positive profits only.
D) zero, positive or negative profits.
Answer: D
Economics
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Economics
The foreign exchange system that has the highest foreign exchange risk is
A. the Bretton Woods system. B. the Gold Standard C. the fixed exchange rate. D. the floating exchange rate.
Economics