One Key Difference Between Profit-Maximizing Firms in Monopolistic Competition Versus

question 5

Multiple Choice

One key difference between profit-maximizing firms in monopolistic competition versus perfect competition is that

• A) monopolistically competitive firms will earn a positive profit in the long run.
• B) perfectly competitive firms break even in the long run, but monopolistically competitive firms do not.
• C) monopolistically competitive firms charge a price greater than marginal revenue.
• D) none of the above

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Definitions:

Personnel Department

The department within an organization that is responsible for hiring, training, and managing employees.

Assembly Department

A division within a manufacturing company where assembled components are put together to form a finished product.

Cost Allocated

The distribution of an indirect cost or group of costs to the various departments, projects, or products that benefit from those costs.

Support Department

An organizational unit that provides essential services, support, or resources that help other direct-function departments operate effectively.