The Difference Between Short-Run Demand and Long-Run Demand for a Monopolistic

question 107

Multiple Choice

The difference between short-run demand and long-run demand for a monopolistic competitor is

• A)There is no difference between long-run and short-run demand for a monopolistic competitor.
• B)long-run demand results in no economic profit, whereas short-run demand might result in profits or losses.
• C)in the long run demand slopes downward, but in the short run it is horizontal.
• D)the long-run demand is elastic, whereas the short-run demand is inelastic.
• E)in the short run demand slopes downward, but in the long run it is horizontal.

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Definitions:

Higher-Order

Pertaining to complex cognitive processes that involve the integration or manipulation of more basic cognitive functions.

Invariant Relationship

describes a consistent and unchanging association between variables regardless of different conditions or operations.

Stimuli

External factors or events that provoke a physiological or psychological response.

Linear Perspective

A cue for distance based on the fact that parallel lines seem to converge as they get farther away from the viewer.