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...


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

Extracted 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

Jun 09, 2022
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