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

question 73

Multiple Choice

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

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

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Definitions:

Separate-but-equal Doctrine

A judicial principle upheld by the U.S. Supreme Court in the Plessy v. Ferguson case (1896) that legalized racial segregation as long as the separate facilities were equal in quality.

Supreme Court

The highest judicial body in a country, typically tasked with interpreting the constitution and adjudicating on matters of national importance.

Poll Taxes

Poll Taxes are taxes levied as a fixed sum on every liable individual, historically used as a means of disenfranchising voters, particularly African Americans in the United States.

Enfranchised African Americans

African Americans who were granted the right to vote, especially referring to the period following the Civil War.