In theory, in the long run, monopolistically competitive firms earns zero profits. However, in reality there are some ways by which a firm can avoid losing profits. Which of the following is one such way?
A) find a market niche and keep it as narrow as possible so as to prevent other producers from entering this market segment
B) gradually increase the mark-up on the goods produced
C) identify new markets and develop products precisely for those markets
D) lower the price of its products to expand its market share
C
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Signaling is
a. actions by the informed party to reveal her true risks b. actions by the informed party to conceal her true risks c. actions by the uninformed party to uncover the true risks d. actions by the uninformed party to conceal the true risks
President Barack Obama pushed forward a national health care plan to increase the availability of medical care for all Americans. How would one determine the opportunity cost of the proposal?