The process of entry and exit into a monopolistically competitive market continues until:
A. profits are positive.
B. profits are zero.
C. profits are negative.
D. Any of these statements could be true.
Answer: B
Economics
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The equilibrium or market clearing price occurs at the point at which
A) quantity demanded equals quantity supplied. B) the supply curve intersects the horizontal axis. C) the demand curve intersects the vertical axis. D) there is a shortage of the desired good.
Economics
Suppose a monopolist is able to charge each customer a price equal to that customer's willingness-to-pay for the product. Then the monopolist is engaging in
a. marginal cost pricing. b. arbitrage pricing. c. voodoo economics. d. perfect price discrimination.
Economics