This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The ability to set a price greater than marginal cost guarantees an economic profit for the ... (Read 11 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
on: Jul 1, 2018
The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC).
 
  Indicate whether the statement is true or false

Question 2

The marginal expenditure of a monopsonist is 4. The wage it currently pays is 3. The labor supply curve has a constant elasticity. What is the elasticity of the labor supply?
 
  A) 0.33
  B) 0.66
  C) 1
  D) 3


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wfdfwc23

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 1, 2018
Answer to Question 1

False. Although the firm is a price setter entry in the long run will drive price down until no economic profit exists.

Answer to Question 2

A


CORALGRILL2014

  • Member
  • Posts: 525
Reply 2 on: Jul 1, 2018
Excellent

ecabral0

  • Member
  • Posts: 310
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

With tough economic times, a lot of people have lost their jobs—and their homes. If this happens, ... With tough economic times, a lot of people have lost their jobs—and their homes. If this happens, ...
Economic and Social Development Economic and Social Development
Economic Development Economic Development
Cost of Laptops Cost of Laptops
economic question economic question
economic question economic question
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library