A Profit-Maximizing Firm in Monopolistic Competition Should Shut Down in the Short

question 44

Multiple Choice

A profit-maximizing firm in monopolistic competition should shut down in the short run

• A)if marginal revenue is less than price
• B)if price is always less than average total cost
• C)if price is always less than average fixed cost
• D)if price is always less than average variable cost
• E)under no circumstances

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Definitions:

Second Amendment

A part of the U.S. Bill of Rights that protects the right of individuals to keep and bear arms.

District of Columbia

The capital city of the United States, Washington D.C., which is not part of any state and has a unique legal and administrative status.

Self-defense

The right to use reasonable force to protect oneself or others from physical harm.

Prior Restraint

A legal measure that prohibits speech or media from being published on the basis that it is harmful, often challenging the principle of freedom of speech.