Which of the Following Is NOT True of Firms in Monopolistic

question 108

Multiple Choice

Which of the following is NOT true of firms in monopolistic competition?

• A) They are price takers.
• B) They practice product differentiation.
• C) They have excess capacity in the long run.
• D) They earn a normal profit in the long run.

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Definitions:

Decision Variable

A variable in optimization or decision-making models whose value is subject to choice within a set of permissible values.

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used in physical and mathematical problems.

Sales Forecasts

Predictive analysis to estimate the amount of product or service a business will sell during a particular period.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.