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Author Question: A monopolistically competitive firm that is incurring a loss will ________ as long as its revenue ... (Read 106 times)

danielfitts88

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on: Apr 19, 2019

Question 1

If ________, then a profit-maximizing, monopolistically competitive firm earns positive economic profits.


◦ P > 
ATC
◦ P < 
ATC
◦ P = 
ATC
◦ All of these are possible.

Question 2

A monopolistically competitive firm that is incurring a loss will ________ as long as its revenue covers variable costs.


◦ produce in the long run
◦ shut down in the short run
◦ earn a profit in the long run
◦ produce in the short run
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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stano32

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Reply #1 on: Apr 19, 2019

Answer 1

P > 
ATC

Answer 2

produce in the short run


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danielfitts88

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Reply #2 on: Apr 19, 2019
Thanks


stano32

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Reply #3 on: Apr 19, 2019
Welcome :)


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