If a Perfectly Competitive Firm and a Monopolistic Competitor in Long

question 36

Multiple Choice

If a perfectly competitive firm and a monopolistic competitor in long run equilibrium face exactly the same demand and cost curves, then there is high probability that

• A)the former will earn zero economic profits, but the latter will earn positive economic profits.
• B)both will earn zero economic profits, but the former will attain lower unit costs than the latter.
• C)both will earn zero economic profits, but the latter will attain lower unit costs than the former.
• D)both firms will earn zero economic profits, and attain the lowest possible unit costs.
• E)neither firm will earn zero economic profits, but both will attain the lowest possible unit costs.

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A form of property insurance that covers losses and damages to an individual's house and assets in the home.

Good Faith

Acting with honesty and sincerity, without intent to deceive or unfair advantage, especially in contractual or negotiation contexts.

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Contracts that provide coverage for damage or loss to property because of fire.

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Fires that escape their intended boundaries or start in an unauthorized area, causing damage or destruction.