2
answers
0
watching
680
views
28 Sep 2019
Indicate whether each of the following statements is true or false and thoroughly explain why.
A. A monopolistically competitive firm that is incurring a loss should immediately cease operations.
B. A monopoly will always earn an economic profit because it is able to set its prices at any level it desires.
C. In the long-run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits.
D. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits.
E. When a firm is able to set its price, its price will always be less than MR.
Indicate whether each of the following statements is true or false and thoroughly explain why.
A. A monopolistically competitive firm that is incurring a loss should immediately cease operations.
B. A monopoly will always earn an economic profit because it is able to set its prices at any level it desires.
C. In the long-run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits.
D. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits.
E. When a firm is able to set its price, its price will always be less than MR.
Joshua StredderLv10
28 Sep 2019
Already have an account? Log in
