In Monopolistic Competition, in the Long Run Firms Have

question 11

Multiple Choice

In monopolistic competition, in the long run firms have

• A) a capacity shortage.
• B) excess capacity.
• C) an economic profit.
• D) an economic loss.

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Definitions:

Absolute Threshold

The minimum stimulus intensity that can be detected by a sensory system at least 50% of the time.

Signal Detection Theory

A theory predicting how and when we detect the presence of a faint stimulus (signal) amid background stimulation (noise). Assumes there is no single absolute threshold and that detection depends partly on a person’s experience, expectations, motivation, and alertness.

Horror Movie

A film genre designed to frighten, scare, or disgust its viewers by leveraging suspense, fear, and shock.

Faint Stimulus

A stimulus that is barely detectable or at the threshold of conscious perception.