Because advertisement services are differentiated, Facebook sets the price equal to marginal revenue. Facebook can mark up the price. Facebook is a price taker. Facebook sets the price equal to marginal cost. If Facebook is correct and other firms are not technically prevented from entering the market and selling advertising spa then Facebook should expect to have economic profits in long run. Zero Positive Ambiguous Negative

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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please answer both parts 

Because advertisement services are differentiated,
Facebook sets the price equal to marginal revenue.
Facebook can mark up the price.
Facebook is a price taker.
Facebook sets the price equal to marginal cost.
If Facebook is correct and other firms are not technically
prevented from entering the market and selling advertising space,
then Facebook should expect to have_economic profits in the
long run.
Zero
Positive
Ambiguous
Negative
Transcribed Image Text:Because advertisement services are differentiated, Facebook sets the price equal to marginal revenue. Facebook can mark up the price. Facebook is a price taker. Facebook sets the price equal to marginal cost. If Facebook is correct and other firms are not technically prevented from entering the market and selling advertising space, then Facebook should expect to have_economic profits in the long run. Zero Positive Ambiguous Negative
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