Author Question: The most prevalent market structures in the U.S. economy are perfect competition and monopolistic ... (Read 67 times)

stevenposner · **on:** Jun 29, 2018

The most prevalent market structures in the U.S. economy are perfect competition and monopolistic competition.

Indicate whether the statement is true or false

Question 2

Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. Suppose at the profit maximizing quantity, Zocalo charges 22 for each dinner entre, and its ATC is equal to 24. What should Zocalo do?

A) Cannot determine whether Zocalo should stay open or shut down in short run, but Zocalo should go out of business in the long run.
B) Produce in the short run and go out of business in the long run.
C) Shut down in the short run and go out of business in the long run.
D) Cannot determine whether Zocalo's should stay open or shut down in the short or long run.