Friday
March 27, 2015

Homework Help: microeconomics

Posted by habib on Saturday, December 5, 2009 at 3:06pm.

32. Firm X is a typical firm in a market characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for services. We can assume that in the long run, the economic profits of typical firms in the industry will be:
A) typical of those earned by monopoly firms.
B) positive but less than the level typically earned by monopoly firms.
C) zero.
D) negative.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Microeconomics - A perfectly competitive industry has a large number of ...
economics - suppose a competitive market consists of identical firms with a ...
Advanced MicroEconomics - In a competitive market, there are two groups of ...
Advanced MicroEconomics - In a competitive market, there are two groups of firms...
microeconomics - Market demand is given as QD = 200 3P. Market supply is given...
economics - This is going to be really long, but I want to see if my answers are...
Micreoeconomics - 1. Assume a perfectly competitive constant cost industry, ...
microeconomics - Market demand is given as QD = 200 3P. Market supply is given...
Advanced MicroEconomics - Construct a short-run supply function for a firm whose...
Economics - How can you obtain a downward sloping market demand curve from a ...

Members