Figure 8.1 -Figure 8.1 Depicts Demand and Costs for a Monopolistically Competitive

question 31

Multiple Choice

Figure 8.1
-Figure 8.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level,

• A)this firm is earning economic profits equal to zero.
• B)this firm is earning economic profits equal to Q1P1 - AC1).
• C)this firm is earning economic profits equal to P1Q1 - AC1).
• D)this firm is in long-run equilibrium.

---

Definitions:

Business Ethics

The study and examination of moral and ethical problems that arise in a business environment, guiding the behavior of individuals and organizations.

Codes of Ethics

Written policies or rules that outline expected moral behavior and guide decision-making within an organization.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws, and for other purposes.