Costume jewelry is produced in a monopolistically competitive market. One producer produces 700 necklaces and at that output level, MR = MC = $3 . We know then that
a. the price is $3
b. economic profit is $2,100
c. the price is higher than $3
d. new firms will enter the market
e. the firms should produce the 700 necklaces in the short run, but shut down in the long run
C
Economics
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Figure 1.8 suggests that
A. The law of increasing opportunity cost does not apply. B. The relationship between study time and grade point average is constant. C. The relationship between study time and grade point average is first linear, then nonlinear. D. Resources can be perfectly adapted between study time and grade point average.
Economics