Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm will exit the industry if it continues to suffer economic losses.
B) In the long run the firm will be able to charge a price that is greater than its average total cost.
C) The firm's demand curve will shift to the right if it stays in business in the long run.
D) The firm will break even if its stays in business in the long run.
B
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In the market for land as a resource, the demand curve is elastic while the supply curve is perfectly inelastic. Identify the underlying assumption
a. There are limited ways in which land can be used as a resource. b. Land as an input has large number of substitutes. c. There is a fixed supply of land. d. Land includes all immovable assets. e. The productivity of land improves over time.
National income is defined as
a. the total income of a nation's permanent residents minus losses from depreciation. b. the income that households and noncorporate businesses receive. c. the total income earned by a nation's permanent residents in the production of goods and services. d. the income that households and noncorporate businesses have left after satisfying all their obligations to the government.