In Monopoly and Monopolistic Competition, Price Is Greater Than Marginal

question 164

Multiple Choice

In monopoly and monopolistic competition, price is greater than marginal cost. This is an indication that

• A)both industries result in product variety.
• B)both industries make economic profits in the long run.
• C)there are barriers to entry in both types of industries.
• D)marginal costs must be very low in both types of industries.
• E)both industries result in deadweight loss.

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Definitions:

fMRI

Functional Magnetic Resonance Imaging, a neuroimaging procedure using MRI technology that measures brain activity by detecting changes associated with blood flow.

Magnetic Signal

Magnetic signal refers to information conveyed through magnetic fields, which can be natural, as in geomagnetic navigation, or artificial, as in magnetic recording devices.

Oxygen-Rich Blood

Blood that has been oxygenated in the lungs and is being transported by the arteries from the heart to the rest of the body to deliver oxygen to tissues and organs.

fMRI

Functional Magnetic Resonance Imaging, a brain imaging technique that measures brain activity by detecting changes associated with blood flow.