Answered: Q4. Answer the following questions: a.…

Q4. Answer the following questions: a. Why do economists regard normal profit as a cost? b. Explain the innovation theory of profit. c. Is McDonald's a monopolistic competition?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 4P

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Q4. Answer the following questions:
a. Why do economists regard normal profit as a cost?
b. Explain the innovation theory of profit.
c. Is McDonald's a monopolistic competition?

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