Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy awatch. Austin pays $900 a month for a Web server and Internet connection. The watches that customers design are made to order by another firm, and Austin pays this firm $120 a watch. Austin has no other costs. The table shows the demand schedule for Austin's watches. Austin is making an economic profit In the long run, the demand for Austin's watches OA decreases; incurs an economic loss OB. increases; makes zero economic profit OC. increases, increases his economic profit D. decreases, makes zero economic profit OE. decreases; shuts down and in long-run equilibrium, Austin CIT

Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy awatch. Austin pays $900 a month for a Web server and Internet connection. The watches that customers design are made to order by another firm, and Austin pays this firm $120 a watch. Austin has no other costs. The table shows the demand schedule for Austin's watches. Austin is making an economic profit In the long run, the demand for Austin's watches OA decreases; incurs an economic loss OB. increases; makes zero economic profit OC. increases, increases his economic profit D. decreases, makes zero economic profit OE. decreases; shuts down and in long-run equilibrium, Austin CIT

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 6SQP

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