Author Question: A monopolistically competitive firm in the long run ________. A) is inefficient because it makes ... (Read 32 times)

jman1234

  • Hero Member
  • *****
  • Posts: 560
A monopolistically competitive firm in the long run ________.
 
  A) is inefficient because it makes zero economic profit
  B) produces a profit-maximizing amount of output that is less than capacity output
  C) is efficient because it makes zero economic profit
  D) sets its price equal to its marginal cost

Question 2

What is producer surplus?
 
  What will be an ideal response?



josephsuarez

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

B

Answer to Question 2

Producer surplus is the price of a good received minus the marginal cost of producing it, summed over the quantity sold.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

For a complete list of videos, visit our video library