A Monopolistically Competitive Firm Maximizes Profits in the Short Run

question 54

Multiple Choice

A monopolistically competitive firm maximizes profits in the short run

• A)by equating MC with price.
• B)by equating MC with MR.
• C)when P = AVC.
• D)when P = ATC.
• E)by maximizing total revenue.

---

Definitions:

Volley Principle

A theory in auditory processing that suggests groups of auditory neurons fire in rapid succession, allowing for the perception of sounds higher than 1000 Hz.

Pitch

A term used in both music and acoustics to describe the perceived frequency of a sound, determining how high or low it sounds.

High-Pitched

Sounds that have a high frequency, often perceived as sharp or squeaky.

Low Frequency

Pertains to waves, such as sound or electromagnetic waves, that have a relatively low rate of oscillation or cycles per second.