In Long-Run Monopolistically Competitive Equilibrium, There Can Be

question 220

Multiple Choice

In long-run monopolistically competitive equilibrium, there can be

• A) economic profits, but not losses.
• B) economic profits or losses.
• C) no economic profits, but losses.
• D) neither economic profits nor losses.

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Definitions:

Liable

Legally responsible for one's actions or obligations, often in the context of paying damages or facing legal consequences.

Harm

Damage or injury to a person or property.

Consumer

An individual who purchases goods or services for personal use rather than for manufacture or resale.

Liable

The state of being legally responsible for something, especially in the context of debts or legal judgments.