In the Short Run,a Monopolistically Competitive Firm

question 10

Multiple Choice

In the short run,a monopolistically competitive firm

• A)May make economic profits,but it fails to make economic profits in the long run because of the entry of new firms.
• B)May make profits just as it does in the long run because firms can enter easily.
• C)Produces at a rate at which long-run average cost equals price,but not at which long-run marginal cost equals marginal revenue.

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Definitions:

Group Discussion

A form of communicative interaction where a small group of people engage in dialogue to exchange ideas, solve problems, or make decisions.

Decision Making

Choosing one alternative from the various alternative solutions that can be pursued.

Servant Leader

One who serves group members by working on their behalf to help them achieve their goals, not the leader’s goals.

Franchise Operators

Individuals or entities that are granted the right to do business under the brand and systems of an established company.