O Macmillan Learning Monopolistic Competition and Product Differentiation-End of Chapter Problem Consider the statement: "In both the short run and in the long run, the typical firm in monopolistic competition and a monopolist each make a profit." a. Is the statement correct with respect to the short run; why or why not? Incorrect. A monopolist will earn positive profits in the short run, whereas a monopolistic competitor will not earn positive profits in the short run. O Correct. Both a monopolistic competitor and a monopolist will earn positive profits in the short run. Incorrect. A monopolist may or may not earn positive profits in the short run, whereas a monopolistic competitor will earn positive profits in the short run. Incorrect. A monopolist will not earn positive profits in the short run, whereas a monopolistic competitor will earn positive profits in the short run. Incorrect. A monopolist will earn positive profis in the short run, whereas a monopolistic competitor may or may not earn positive profits in the short run.
O Macmillan Learning Monopolistic Competition and Product Differentiation-End of Chapter Problem Consider the statement: "In both the short run and in the long run, the typical firm in monopolistic competition and a monopolist each make a profit." a. Is the statement correct with respect to the short run; why or why not? Incorrect. A monopolist will earn positive profits in the short run, whereas a monopolistic competitor will not earn positive profits in the short run. O Correct. Both a monopolistic competitor and a monopolist will earn positive profits in the short run. Incorrect. A monopolist may or may not earn positive profits in the short run, whereas a monopolistic competitor will earn positive profits in the short run. Incorrect. A monopolist will not earn positive profits in the short run, whereas a monopolistic competitor will earn positive profits in the short run. Incorrect. A monopolist will earn positive profis in the short run, whereas a monopolistic competitor may or may not earn positive profits in the short run.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 4QFR
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O Macmillan Learning
Monopolistic Competition and Product Differentiation-End of Chapter Problem
Consider the statement: "In both the short run and in the long run, the typical firm in monopolistic competition and a
monopolist each make a profit."
a. Is the statement correct with respect to the short run; why or why not?
Incorrect. A monopolist will earn positive profits in the short run, whereas a monopolistic competitor will not earn
positive profits in the short run.
Correct. Both a monopolistic competitor and a monopolist will earn positive profits in the short run.
Incorrect. A monopolist may or may not earn positive profits in the short run, whereas a monopolistic competitor will
earn positive profits in the short run.
Incorrect. A monopolist will not earn positive profits in the short run, whereas a monopolistic competitor will earn
positive profits in the short run.
Incorrect. A monopolist will earn positive profiis in the short run, whereas a monopolistic competitor may or may not
earn positive profits in the short run.
Transcribed Image Text:b. Is the statement correct with respect to the long run; why or why not?
Incorrect. A monopolist will earn positive profits in the long run, whereas a monopolistic competitor may or may not
earn positive profits in the long run.
Correct. Both a monopolist and a monopolistic competitor will earn positive profits in the long run.
Incorrect.Neither a monopolist nor a monopolistic competitor will earn positive profits in the long run.
Incorrect. A monopolist will earn positive profits in the long run, whereas a monopolistic competitor will not earn
positive profits in the long run.
Incorrect. A monopolist may or may nnot earn positive profits in the long run, whereas a monopolistic competitor will
earn positive profits in the long run.
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