A monopolistically competitive firm is making a positive economic profit. In the long run, which of the following is most likely?
A) It will produce less output and it will charge a lower price.
B) It will produce the same output and charge the same price.
C) It will produce less output but keep price the same.
D) It will keep output the same but will charge a higher price.
A
Economics
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All of the following are factors that will shift the demand curve except
A) a change in the price of complementary products. B) a change in the price of substitute products. C) a change in income. D) a change in the price of inputs.
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For complements, cross price elasticity of demand is:
a. Negative b. Positive c. between zero and one only d. zero.
Economics