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

question 71

Multiple Choice

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

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

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Definitions:

Point Estimate

A single value or statistic that serves as the best guess or estimate of a population parameter.

Population Mean

Population mean is the average value of all elements in a complete set or population.

Point Estimator

A single value or statistic calculated from sample data that is used to estimate a population parameter.

Binomial Populations

Populations wherein each member must fall into one of two categories, which are mutually exclusive.