Positive economic profits exist for a firm in the long run if price is aboveQuestion 4Select one:a.long-run marginal cost.b.long-run total cost.c.long-run variable cost.d.long-run average cost.

Economic profits in a short-run equilibriumQuestion 1Select one:a.are never negative because a firm would shutdown if profits are negative.b.may be positive, zero, or negative.c.will never exceed the difference between marginal revenue and marginal cost per unit of output.d.are always zero.

A firm in long-run equilibrium under monopolistic competition will earnA) positive oligopoly profits because each firm sells a differentiated product.B) zero economic profits because of free entry.C) negative economic profits because it has economies of scale.D) positive economic profit if it engages in international trade.E) positive monopoly profits because each sells a differentiated product.

Which statement is true? Group of answer choicesZero economic profits in the long run means that firms make zero accounting profits.Free entry and exit in a competitive industry means that firms make negative economic profits in the long run.A competitive firm in the long run can make positive economic profits.A competitive firm in the long run will always leave the industry as it makes zero economic profits.None of the above.

In the long run, a representative firm in a monopolistically competitive industry will end upMultiple Choicehaving an elasticity of demand that will be less than it was in the short run.having a larger number of competitors than it will in the short run.producing a level of output at which marginal cost and price are equal.earning a normal profit, so zero economic profit.

1-2 Economic profit​a.is a theoretical measure of a firm’s performance and has little value in real world decision making.​b.can be calculated by subtracting implicit costs of using owner-supplied resources from the firm’s total revenue.​c.is negative when total costs exceed total revenues.​d.is generally larger than accounting profit. ​