In Long- Run Equilibrium,a Monopolistically Competitive Industry Is Characterized by

question 30

Multiple Choice

In long- run equilibrium,a monopolistically competitive industry is characterized by

• A)all firms operating at the minimum point of their long- run average cost curves.
• B)a perfectly elastic demand curve facing each firm in the industry.
• C)positive profits for all firms in the industry.
• D)zero profits for all firms in the industry.
• E)positive profits as a result of barriers to entry.

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Definitions:

Classical Conditioning

An educational method where two signals are consistently associated together, leading to a reaction initially triggered by the second signal but ultimately provoked by just the first signal.

Proximate Causes

Immediate, underlying factors within an organism that explain "how" biological processes occur.

Diurnal Animals

Animals most active during the day (e.g., pigeons). Compare with crepuscular animals and nocturnal animals.

Navigation

Involves the use of cues to change direction when necessary in order to reach a specific destination; requires a sense of direction, called compass sense, and an awareness of location, called map sense.