Refer to the graph shown. The firm in this monopolistically competitive industry will:
A. incur economic losses of $70,000 per year.
B. earn economic profits of $70,000 per year.
C. incur economic losses of $140,000 per year.
D. earn economic profits of $140,000 per year.
Answer: C
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From 1860 to 1910, U.S. mobility between social classes and occupations
(a) distracted immigrants. (b) increased the potential migrant's opportunity cost of staying in Europe. (c) attracted immigrants to the U.S. (d) decreased foreign investment in the U.S.
Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does. b. Harold must be better at ironing than Sarah is. c. The opportunity cost of ironing is greater for Harold. d. Harold probably has an absolute advantage in ironing. e. Sarah has a higher opportunity cost of laundering her clothes than Harold does.