Author Question: A firm in monopolistic competition that is maximizing profit ________. A. always makes a positive ... (Read 47 times)

bobbysung · **on:** Jun 29, 2018

A firm in monopolistic competition that is maximizing profit ________.

A. always makes a positive economic profit in the short run
B. never needs to shut down because its price always exceeds minimum average variable cost
C. might, in the short run, sell at a price that is less than average total cost
D. shuts down temporarily if it incurs a loss equal to total variable cost

Question 2

What are Medicaid and Medicare?

What will be an ideal response?

komodo7 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C In the case of answer C, the firm incurs an economic loss.

Answer to Question 2

Medicaid and Medicare are in-kind government transfer programs that provide health and hospitalization benefits. Medicare is provided to the aged and their survivors and to certain of the disabled regardless of income. Medicaid is provided to people with low incomes.