A Firm in Monopolistic Competition Is Similar to a Firm

question 56

Multiple Choice

A firm in monopolistic competition is similar to a firm in perfect competition because they both

• A) can make only zero economic profit in the short run.
• B) maximise their profits by producing where P = MR = MC.
• C) can make only zero economic profit in the long run.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

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Definitions:

Physiological Needs

The basic physical requirements for human survival, such as food, water, shelter, and sleep, which must be met before higher-level needs can be addressed.

Psychological Needs

Basic human motivators related to mental health and well-being, such as belongingness, esteem, and self-actualization.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, focusing on the desire for respect, self-esteem, and recognition from others.

Security Needs

Basic human requirements for safety and protection, as identified in Maslow's hierarchy of needs.