-The Figure Above Shows the Situation Facing Smart Digit, Inc

question 264

Multiple Choice

-The figure above shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. The firm's economic profit in the long run is

• A) zero.
• B) $600.
• C) $900.
• D) $2,400.

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Definitions:

Informal Sanction

A non-official punishment or reward within a society used to enforce social norms, such as shunning or praise.

Formal Sanctions

Officially recognized actions, penalties, or rewards intended to enforce compliance with laws, rules, or social norms.

Informal Sanctions

Punishments or rewards that are not officially sanctioned by law or formal authority, but arise from social norms and expectations.

Laws

Systematic sets of rules that govern behavior and are enforced through social or governmental institutions.