In What Way Does Long-Run Equilibrium Under Monopolistic Competition Differ

question 60

Multiple Choice

In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?

• A)Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency.
• B)The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product.
• C)Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
• D)Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency.

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Definitions:

Informal Communication

The exchange of information, thoughts, or messages in an unofficial capacity, often through social interactions or casual means.

Climate for Voice

The organizational environment that encourages or discourages individuals from expressing ideas, opinions, and concerns.

Direct Supervisors

Individuals who have immediate authority over other employees in an organizational structure, responsible for managing day-to-day activities and performance.

Organizational Citizenship Behaviour

Actions by employees that are not part of their formal job requirements but contribute to the effectiveness of the organization.