A Monopolistically Competitive Firm Is Similar to

question 239

Multiple Choice

A monopolistically competitive firm is similar to

• A) a monopoly in the short run because it can make an economic profit in the short run and is similar to a perfectly competitive firm in the long run because it cannot make a positive economic profit.
• B) a perfectly competitive firm in the short run because it cannot make an economic profit in the short run and is similar to a monopoly in the long run because it can make an economic profit.
• C) a monopoly because it can make an economic profit in both the short run and long run.
• D) a perfectly competitive firm because its economic profit is equal to zero in both the short run and long run.

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Definitions:

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, drama, or psychological means.

Frustration Aggression Hypothesis

A psychological theory suggesting that aggression is often the result of experiencing frustration from blocked goals or desires.

Electric Shocks

The application of electrical current to the body, often used in psychological experiments to study fear or pain responses.

Displacement

Displacement is a psychological defense mechanism where an individual redirects their emotions or reactions from the original source of distress to a more acceptable or less threatening target.