Author Question: Firms in monopolistic competition and perfect competition typically a. are price takers b. produce ... (Read 167 times)

BrownTown3 · **on:** Jun 30, 2018

Firms in monopolistic competition and perfect competition typically
a. are price takers
b. produce identical products
c. earn zero economic profit in the long run
d. face a downward-sloping demand curve
e. face an upward-sloping total revenue curve at all rates of output

Question 2

As a result of legislation to establish a floor price for milk, most dairy farmers will
a. end up earning a normal rate of return in the long run
b. end up earning a zero rate of return in the long run
c. end up earning a negative rate of return in the long run
d. benefit from the increased cost of specialized resources used in dairy farming
e. suffer if they own specialized resources at the time the legislation is passed