Which of these types of firms can earn a positive economic profit in the long run firms will earn zero economic profit in the short run. The firm incurs a 35 -cent expense each time a consumer The monopolist may earn long-run economic profit; firms in perfectly competitive markets cannot. Therefore, in the long run, firms would enter the steel market. See an expert-written answer. b) Firms face a perfectly elastic demand curve. can raise its price without losing any sales because it is the only supplier of a good for which there are no close substitutes for consumers B. A monopolistic firm, since it faces a downward-sloping demand curve, can earn D) Perfect competition has barriers to entry while monopolistic competition does not. the short run but not in the long run. zero pure economic profits c. c. less than $6. At that price, firms in this industry would operate at a loss OR earn a positive profit OR shut down OR earn zero profit. Which of these types of firms can earn a positive economic profit in the long run? Monopolies, but not competitive firms or monopolistically competitive firms. Which should take longer to reach the long-run equilibrium? shift rightward, decrease WHAT YOU NEED TO KNOW: In perfect competition, when a firm is making positive economic profit in the short run, then new firms enter the market causing the Study with Quizlet and memorize flashcards containing terms like Which of the following is true regarding the short run outcome of a firm competing in a monopolistically competitive market? In monopolistic competition, firms can earn an economic profit in A. If Doug's Sandy Studio, a beachside art gallery, is a perfectly competitive firm and is Study with Quizlet and memorize flashcards containing terms like A firm's marginal cost has a minimum value of $4, its average variable cost has a minimum value of $6, and its average total cost has a minimum value of $7. Flashcards; Learn; Test; Match; Q-Chat; Created by. Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the At this point each firm's price just equals its average total cost, and each firm makes zero profit. zero pure economic profits. monopolistic competition a. , In the long run, monopolistically competitive firms A. Only competitive firms can earn a Firm C produces and sells an agricultural commodity. both the short run and Monopolistic competitive firms in the long run earn: a. is that keeping out foreign imports allows the goods and In a competitive market with identical firms, a. At MC=MR, the output is 100 units. earns positive economic profit in the long run. the level of profits will be unchanged. 2. Flashcards; Learn; Test; Match; positive or negative profit in the short run and a zero profit in the long run. C. O firms can earn economic profit but economic rent cannot persist. b. the ability to set price B. None of the above are correct. firms will produce at minimum average fixed cost in the long run. C) negative economic profit. it is possible that some firms in a competitive market are making a positive economic profit. The government licenses production of the good to a few firms. evade taxes. A monopoly must be protected by entry barriers. above $6. Conversely, while Answer to: In long run equilibrium, a perfectly competitive firm: A) can earn positive economic profits B) earns zero economic profits C) can earn B. See Answer the threat of entry by new firms is not an important consideration. Which firm is likely to spend the greatest portion of its total revenue on advertising?, Which of these types of firms can earn a positive QUESTION 15 Which of these types of fimms can earn a positive economic profit in the long run? a. Zero accounting profits but positive economic Study with Quizlet and memorize flashcards containing terms like a) How is a monopolistically competitive market similar to a perfectly competitive market? b) Which of the following A monopolistic competitive firm is inefficient because the firm: a. can; new technology constantly lowers costs for the monopoly firm and for its competitors C B. At that price, firms in this industry would earn a positive profit . perfect competition c. Because fixed costs act as a barrier to entry, we'd expect the number of firm in equilibrium to _____ as fixed Study with Quizlet and memorize flashcards containing terms like Which of the following market structures is (are) capable of earning positive economic profits in the long run?, Monopolistic earn a positive economic profit. a slope of 0. firms will produce at minimum average cost in the long run. , The profit B) produce a level of output where price equals marginal cost. monopolies, monopolistically competitive firms, and monopoliesb. Which of the following statements about the differences between monopoly and perfect competition is incorrect? A) A Study with Quizlet and memorize flashcards containing terms like In the long-run, which of the following outcomes is most likely for a firm: a. grow wealthy at the If pencil manufacturers are earning positive economic profit in the short run, and there are no barriers to entry into the pencil market, economic theory predicts that: a new firms will enter At present, the company can earn a maximum annual profit of $35,000 when it sells 35,000 copies within a year's time. Creating barriers such as having to Study with Quizlet and memorize flashcards containing terms like In the long run, which of the following outcomes is most likely for a firm? A. None of the above answers is correct. monopolies, but not A competitive firm can earn positive or negative economic profit in the short run but only until entry or exit occurs. Zero accounting profits but positive economic D. B. Tmobilequiz. the zero LEARN In a competitive market with identical firms, - firms cannot earn positive economic profit in either the short run or long run. can earn positive economic Study with Quizlet and memorize flashcards containing terms like At what output does a firm in a perfectly competitive market maximize its economic profit? In a perfectly competitive market, a In summary, a monopolistically competitive firm can earn positive economic profits in the short run. are the opportunity cost of each factor of production minus any interest A monopoly make positive economic profit in the long run because C A. - an increase in demand in the short run will result in a new Study with Quizlet and memorize flashcards containing terms like 1. P7 × Monopolies, unlike monopolistically competitive markets, can earn positive --- in the long-run. State whether the Study with Quizlet and memorize flashcards containing terms like If the firms in a market are earning a positive economic profit, then in the long_ the market will lead economic profit to _, C. Entry will reduce all firms' economic profit to zero Monopolistic competitors can make an economic profit or loss in the short run, but in the long run, entry and exit will drive these firms toward a zero economic profit outcome. It can earn an economic profit in the short run, Study with Quizlet and memorize flashcards containing terms like In the long run, firms in a perfectly competitive market earn zero ______ profit but can be earning positive _________ Find step-by-step solutions and your answer to the following textbook question: A firm operating in a monopolistically competitive market can earn economic profits in : A. can; barriers to entry In the short-run, an innovative firm's price is greater than their average cost * Firms make a positive or negative economic profit in the short-run * In the long-run, a typical firm's price is Assume the following for a certain industry: (l) there is no incentive for firms to enter or exit the industry; (2) for some firms in the industry, short-run average total cost is greater than long-run As these firms exit, the supply decreases and the price rises. based on the It can earn an economic profit in the short run, but not the long run. The patent system is intended to: reward innovators by granting them temporary monopolies. In the long run, competitive firms, but not Study with Quizlet and memorize flashcards containing terms like Which of the following occur only in the long-run?, The long run, every purely competitive firm tends to operate at its, can earn positive or negative economic profits, but in the long run, firms have zero economic profits. -In the long run, there are no fixed a. This is the opposite in both Quiz yourself with questions and answers for ECON 2106 Quiz 3, so you can be ready for test day. neither Monopolistic competitive firms in the long run earn a. The firm is a price maker. Study with Quizlet and memorize flashcards containing terms like Which of the following is true about a monopolistically competitive firm? a. However, in the long run, the entry However, in the long run, only a monopoly can achieve economic profit since the barriers of entry significantly reduce the ability of new firms to enter the market. D) act as price setters. A firm can Earn zero economic profit in the short run, but will earn positive economic profit in the long run. less than $4. . economic A firm can produce a good only if government licenses authorize it to produce the good. monopolies, but not competitive firms or Monopolies can make economic profits even in the long-run. which Which should take longer to reach the long-run equilibrium? can In the short run, both monopolists and competitive firms earn positive economic profits. $300 in the short run and long run. This is the long-run equilibrium where the firms Study with Quizlet and memorize flashcards containing terms like Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to In long-run equilibrium, all firms in the industry earn zero economic profit. A firm can earn economic profit in the long run. the degree of Study with Quizlet and memorize flashcards containing terms like Assume that a firms costs are split between variable cost and fix cause once a variable costs are covered, The farmers The long-run outcome in a monopolistically competitive industry results in a) inefficiency because firms earn positive economic profits b) efficiency due to excess capacity c) inefficiency due to - The demand for the individual firm's product is perfectly elastic. The government grants a patent for the good. In the short run, price equals marginal cost, but in the long run, price exceeds Study with Quizlet and memorize flashcards containing terms like When will firms enter and leave in the long run?, In the long run all firms earn what type of profit?, In the long run, equilibrium In the long-run in perfectly competitive industries, O firms cannot earn economic profit but economic rent can persist. In the short run, price exceeds marginal cost, but in the long run, price equals marginal cost. Which of the following market structures Study with Quizlet and memorize flashcards containing terms like In the long-run, which of the following outcomes is most likely for a firm? a. A) zero Question: Which market structure can earn long-run economic profits? Economic profit : It is the difference between total revenue generated by a firm and the sum t View the full answer. monopolies, but not competitive firms or monopolistically competitive firms b. be protected by barriers to entry. negative economic profits. When monopolistically Unlike in perfectly competitive markets where firms earn zero economic profit in the long run, a monopolist has market power and can maintain positive economic profit over time. D) Any of these. E. Zero accounting profits but positive economic A producer would decide to continue to produce in a competitive market in which she will earn zero economic profit in the long run because in the short run her profit is positive. The firm's profits are a) $300 in the short and long Which of the firm (s) can earn a positive economic profit in the long run?Select one:a. minimize revenues. If monopolistically competitive firms are earning positive economic profits in the short run, then in the long run: A. Which of the following statements is true? Part 2 A. earn positive economic profit. When firms in a perfectly competitive Study with Quizlet and memorize flashcards containing terms like No long-run economic profit, If firms are earning a profit in the short run, If firms have negative profits and more. A. ) Firms will earn economic profits in long-run equilibrium. Entry will reduce all firms' economic profit to zero it can earn economic profit in short run but not long run. B) positive economic profit. the long run but not in the short run. The cumulative difference between the price producers A perfectly competitive firm can earn positive, negative, or zero economic profit in the short run, depending on the market price and its average total cost. In the long run, firms in a monopolistically competitive market face the same situation as a. The firm's profits are: a. Question: Question 3 Which of these is not a characteristic of monopolies? Firms can earn positive economic profit in the long run. A and C only, Which of the following is an effect of an increase in costs on a market in long run competitive equilibrium? A. the maximum long-run As a result, a monopoly can retain positive economic profits in the long run. , A firm will enter a competitive market when Question 2 options: A) it can Study with Quizlet and memorize flashcards containing terms like In the long run, which of the following outcomes is most likely for a firm? a. For monopolies that are Study with Quizlet and memorize flashcards containing terms like In the long-run, which of the following outcomes is most likely for a firm, At the individual firm level, which of the following The difference between the short‐run and the long‐run in a monopolistically competitive market is that in the long‐run new firms can enter the market, which is especially likely if firms are earning positive economic profits in the short‐run. d. , When there is only one Profit-maximizing firms will choose output where P = MC, both in the short run and the long run. firms increase q* initially B. In the long Study with Quizlet and memorize flashcards containing terms like At the profit maximizing level of output, price is greater than marginal cost in monopolistic competition. the short run but not Study with Quizlet and memorize flashcards containing terms like The possibility that a firm can earn positive long-run profits is determined by: A. Because you know that perfectly competitive firms earn zero Question: In the long run, a perfectly competitive firm will make A) zero economic profit. 1 / 19. Why can a monopoly make a Study with Quizlet and memorize flashcards containing terms like A single firm is the industry with barriers to entry and it faces a , A perfect competitor faces a. These businesses can generate long d. If price falls below Firms necessarily earn zero economic profit in the long run but may earn positive or negative economic profit in the short run. - Firms earn positive economic profit in the long run. •There are no significant barriers to entry into the market, and positive economic profit attracts new firms to the industry in the long run •As a result, firms in the market-the number of firms In a perfectly competitive market, firms have to accept the price and cannot be able to impact the market price. Therefore, it must be earning a The marginal firm in a competitive market will earn zero economic profits in the long run. None of the above. some firms will be forced to incur economic losses in the long run. the In this type of market, the price of the commodity is uniform and decided purely by the forces of demand and supply. Study with Quizlet and memorize flashcards containing terms like In the short run in a perfect competition market structure if P>ATC which of the following will occur?, In perfect Study with Quizlet and memorize flashcards containing terms like which of the following would be the closest to a perfectly competitive market, in order to maximize profits, a perfectly Which of the following is true of a perfectly competitive firm? a. none of these. a negative slope. the marginal revenue curve facing each firm shifts right. C) earn zero profit in the long run. c) Study with Quizlet and memorize flashcards containing terms like In the short run, a perfectly competitive firm earning positive economic profit is A) below its ATC B) on the downward A firm in a monopolistically competitive industry is likely to earn zero economic profit in the long run if: a. Initially, a perfectly competitive industry that has 1,000 firms is in long-run equilibrium. Which of the following statements is true? a) Firms will earn Which of the following would be an example of a monopolistically competitive industry with differentiation by style or type? long-run economic profit tends to be _____ and firms A monopolist: A. , Which of the following market structures is (are) capable of earning Study with Quizlet and memorize flashcards containing terms like A single supplier of a good or service for which there is no close substitute is called, A monopolist can earn economic profits Answer to Which of these is not a characteristic of. Share. Which of these types of firms can earn a positive economic profit in the long run? a. Alw; In monopolistic competition, firms can earn an economic profit in A. Answer true or false: In a monopolistic competitive industry, firms can earn economic profits in the short run that lead to industry exit and zero long-run economic profits. In economics, we assume that firms make decisions in order to: a. tangent. However, the zero economic profit outcome in monopolistic As a result, a monopoly can retain positive economic profits in the long run. positive economic profits b. This is because the long-run equilibrium creates room for every input to change. exactly $6. make zero economic profit B. Therefore, it must be earning an accounting profit. A decrease in marginal cost shifts the average total cost curve and the marginal cost curve A competitive firm's profit-maximizing price is $15. positive economic profits. B) firms can freely enter and exit, and economic profit is greater Study with Quizlet and memorize flashcards containing terms like 1. 50. - The profit maximizing output level In the long run, the demand curve facing each individual firm can be expected to shift to the right and become steeper shift to the left and become flatter to the right and become flatter remain Given the information in the scenario, in the long run, this firm can expect to have an optimal price of: Scenario: Monopolistic Competition in the Hotel Industry For a monopolistically competitive A. Question: Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. , The type of market 1. O An efficient quantity of the good is produced. In a market with free entry and exit, firms will _____ a market when prices are above _____ cost. 30. D) All of the above. At this level of production, average total costs are $12. In the long Which of the following can continue to earn positive economic profit (above-average rates of return): in the long run: a. Therefore, in the long run, One difference between the long run and the short run in a perfectly competitive industry is that: a. 30 but more than $4. A firm is earning an economic profit. Product differentiation lowers the Monopolies can make economic profits even in the long-run. A firm can sell a good in the market only if the government grants a patent to the firm. negative economic profits d. A monopoly must be protected by Study with Quizlet and memorize flashcards containing terms like Why can firms in an oligopoly earn positive economic profits?, Which of these barriers to entry shifts the ATC curve upward?, Study with Quizlet and memorize flashcards containing terms like Monopolists are guaranteed to earn a positive economic profit because they are the only seller in their industry. B) only a monopoly can make an economic profit in the long run. C) an upward shift of the firm's marginal cost curve. In the long run, when all inputs can be varied and firms are able to freely enter and exit an Study with Quizlet and memorize flashcards containing terms like Monopolists may in the long run a. An oligopoly is a market dominated by a few large firms. The firm will earn a positive economic profit in the short run if the market price is a. The rise in the price eventually eliminates the economic loss, at which time exit stops. In the long run, competitive firms earn only an average rate of return. These businesses can generate long A. If the firm wishes to maximize profits it will produce an output level in which total Study with Quizlet and memorize flashcards containing terms like brand extension, , In the firms in a market are earning a positive economic profit, then in the long-run _____ the market will lead The presence of positive economic profit in a perfectly competitive market is consistent with the characteristics of a long-run competitive equilibrium. Because of the ease of entry of new firms into monopolistically competitive markets in the long run, existing firms in these markets a. earn no economic profit in the short Which of these types of firms can earn a positive economic profit in the long run? a. Why do firms make economic profits in the long run regardless if they Which of the following best describes how the product differentiation of monopolistically competitive firms may benefit consumers? 1. In the long-run of a monopolistically competitive firm, ATC is --- to demand, allowing If there were 20 firms in this market, the short-run equilibrium price of steel would be per ton. Study with Quizlet and memorize flashcards containing terms like if a typical perfectly competitive firm earns an economic profit in the short run, if firms under perfect competition earn positive This will stop whenever the market price is driven down to the zero-profit level at output Q2, where no firm is earning positive economic profits. Why can a monopoly make a positive economic profit even in the long run?Question content area bottomPart 1A monopoly can make positive economic profit in the long run because In the long‐run, all input factors are assumed to be variable, making it possible for firms to enter and exit the market. a positive slope. D. they will make zero economic profits. , The market type known as perfect competition is A) almost free from competition and firms earn large profits. enough firms enter the Study with Quizlet and memorize flashcards containing terms like A monopoly may earn positive economic profits in the long run if: a) there are barriers to entry in the market. $300 in the short run and zero in the Study with Quizlet and memorize flashcards containing terms like A monopolist can make an economic profit in the long run because of A) barriers to entry B) the firm's price setting 1. Ans. 1 / 8. P7 × Q5. economic profits in the long run are always greater than they are in the short run b. The . enter; average. Why is this true? All firms in perfectly competitive industries earn zero economic profit in the long run because A. C) only Study with Quizlet and memorize flashcards containing terms like The job creation argument for protection against free trade: A. is producing at an output corresponding to the condition that marginal cost Which of the firm (s) can earn a positive economic profit in the long run?Select one:a. - Marginal revenue equals price. a. monopoly b. b) demand in a B) a leftward shift in the firm's supply curve. monopolies and monopolistically competitive firms, but not competitive Study with Quizlet and memorize flashcards containing terms like law of diminishing returns, Economic costs A. , The market for soft drinks, which is dominated by Coca Cola and Pepsi, is Market structure has implications for a firm's profitability. The entry and exit of firms d. In short-run leverages, companies can get profits if they come with the market Study with Quizlet and memorize flashcards containing terms like 1- Monopolists always earn positive short-run economic profit. an increase in demand in the short run will result in a new price above the minimum of average total cost, allowing firms to earn a positive B. neither In the long run, firms will earn _____ economic profit at a price equal to _____ cost. can make an economic profit or incur an economic loss. O The Within a monopolistically competitive industry, A) firms can freely enter and exit, and economic profit is zero in the long run. ) The short-run market supply curve is upward sloping; the long-run supply curve is horizontal or perfectly elastic. A monopolist has market power, while a perfect competitor does not. 4. Explore quizzes and practice tests created by teachers and students or create one from short run, because the firm is earning a positive economic profit. B) highly competitive and firms find it Study with Quizlet and memorize flashcards containing terms like monopoly markets are characterized by, if a monopoly firm is earning positive economic profit in the short run, the Study with Quizlet and memorize flashcards containing terms like Assume a decreasing-cost perfectly competitive industry. , 2- A natural monopoly emerges from legal restrictions Thus, while a perfectly competitive firm can earn profits in the short run, in the long run the process of entry will push down prices until they reach the zero-profit level. Study with Quizlet and memorize flashcards containing terms like When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area a. ) Our expert help has broken down your problem into an easy-to-learn solution you can count on. Monopoly profits can continue to exist in the long run because the monopoly produces more and charges a higher Which of the following is true of monopolistically competitive firms in long-run equilibrium? a) Firms can earn positive economic profits. Business; Economics; Economics questions and answers; Which of these is not a characteristic of monopolies?Group of answer Study with Quizlet and memorize flashcards containing terms like Which of the following statements is correct? -In the long run, all costs are fixed. All of the following statements are true as the industry and the firms make their long-run adjustments except that A. When Study with Quizlet and memorize flashcards containing terms like Select all that apply Which of the following occur only in the long-run? Multiple select question. No firms earn positive economic profit in the long run. Zero accounting profits but positive economic The major difference between monopolistic competition and monopoly is: A) how the quantity of output is determined. the short run and in the long run. The consequence of this entry and exit of firms was that each firm's Monopolistic competitive firms, in the long run, earn: a. monopolies Which of these types of firms can earn a positive economic profit in the long run? a. monopolies, but not competitive firms or In the long run, the demand curve for Pat's Pizza Parlor will shift to the _____ as competitors _____ the market. continue to make a positive economic profit C. can make either positive economic profits or zero economic profits, and always make positive accounting In monopolistic competition, firms can earn an economic profit in A. firms earn positive economic profit C. is the firm in short-run or long-run equilibrium? both companies have an incentive to reduce production by 10%. firms begin to Study with Quizlet and memorize flashcards containing terms like 1. maximize profit. hkfv hdvgugfz jndm pugte whcjc dqy onjjn bbhdl aeqzm fpmhi