In the Long Run,the Positive Economic Profits of Wings N

question 84

Multiple Choice

In the long run,the positive economic profits of Wings N Things,a monopolistic competitor,are

• A) not driven out because competition is not perfect.
• B) not driven out because the demand curve slopes downward.
• C) eliminated due to the entry of firms into the industry.
• D) eliminated due to the departure of firms from the industry.
• E) not driven out because firms cannot enter the industry.

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Definitions:

Average Total Costs

The average cost for each unit produced, determined by dividing the overall cost of production by the total number of units made.

Average Total Costs

The total cost of production divided by the quantity produced, encompassing both fixed and variable costs.

Total Fixed Costs

The sum of all costs required to produce any output in the short term that does not change with the level of production, such as rent, salaries, and insurance.

Total Fixed Costs

Fixed costs are expenses that do not change with the level of output produced, such as rent or salaries, summed up as the total fixed costs.