Long-Run Equilibrium in Perfect Competition and in Monopolistic Competition Are

question 15

Multiple Choice

Long-run equilibrium in perfect competition and in monopolistic competition are similar because in both models,firms _____ in the long run.

• A)produce at the minimum point of the average total cost curve
• B)set price equal to marginal cost
• C)make zero economic profits
• D)have excess capacity

---

Definitions:

Overload Theory

A theory that suggests there is a point at which an increase in the amount of information or stimuli becomes excessive, leading to a decrease in decision quality or individual well-being.

Density-Intensity Theory

A theory suggesting that the strength and cohesion of social groups are influenced by their size and the intensity of interactions among group members.

Territories

Defined areas that are claimed or occupied by a person, group, or organism, often defended against perceived threats or intruders.

Personal Identities

The concept of oneself that is developed over time through experiences, relationships, and internal processes, guiding one's beliefs, behaviors, and interactions with others.