Monopolists can earn positive economic profits in the long run ...

[deesands]

Monopolists can earn positive economic profits in the long run because they are more productively efficient than perfectly competitive firms.
 a. True
  b. False

Question 2

A perfectly competitive firm producing 100 units of output per period finds that: Average total cost is 20; Average variable cost is 12; Marginal cost is 18 and increasing; Price of the product is 15. This firm should
 a. produce more output
  b. raise the price of its product
  c. reduce production without shutting down
  d. shut down (reduce output to zero)
  e. do nothing (it is currently maximizing profit)

[rleezy04]

Answer to Question 1

B

Answer to Question 2

C

[deesands]

Thank you

[rleezy04]

Happy to help you