Assuming Identical Production Functions and Cost Curves, the Long-Run Equilibrium

question 23

Multiple Choice

Assuming identical production functions and cost curves, the long-run equilibrium of a monopolistically competitive firm, as compared with a perfectly competitive firm, is such that, for the former, price is:

• A) higher and output is greater.
• B) higher and output is smaller.
• C) lower and output is greater.
• D) lower and output is smaller.

---

Definitions:

Dividends Received

Refers to the payments received by shareholders from a company's earnings, typically distributed periodically.

Dividend Record Date

The specific date set by a corporation's board of directors after which the shareholders on record will be entitled to receive the declared dividend.

Dividends Payable

A liability account on a company's balance sheet representing the amount owed to shareholders from declared dividends not yet paid.

Par Common Stock

Par Common Stock refers to the nominal or face value assigned to common stock shares by the issuing company.