Use the Following Two Statements About Monopolistic Competition to Answer

question 79

Multiple Choice

Use the following two statements about monopolistic competition to answer this question. I. In the long run, the price of the good will equal the minimum of the average cost.
II) In the short run, firms may earn a profit.

• A) I and II are true.
• B) I is true, and II is false.
• C) I is false, and II is true.
• D) I and II are false.

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Definitions:

Preset Count

A predetermined value used in counting applications to trigger an event when a counter reaches this value.

Input

Data or signals received by a system, device, or computational process for processing or manipulation.

Closed

Often refers to a circuit or loop that is complete and allows electrical current to flow through it.