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:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing being explained.

Competitive

The condition of the market in which businesses or sellers independently strive for consumers' patronage to gain a profit.

American Industry

Refers to the manufacturing and economic sectors that drive the United States’ economy, encompassing a wide range of goods and services.

Air Pollution

The presence of harmful substances in the air that can cause health issues for living organisms and damage the environment.