What Price Does a Monopolistically-Competitive Firm Charge

question 145

Multiple Choice

What price does a monopolistically-competitive firm charge?

• A)A price equal to marginal cost.
• B)A price greater than marginal cost.
• C)A price equal to average cost.
• D)A price less than average cost.

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Definitions:

Weber Fraction Values

Measures that quantify the smallest change in a stimulus that can be perceived, based on Weber's Law, which relates to the just noticeable difference in sensory perception.

Sensory Modalities

Various forms of senses through which living organisms perceive the world, such as sight, sound, smell, taste, and touch.

Detecting Pain

The physiological and psychological process by which organisms recognize and respond to stimuli that are noxious and potentially harmful.

Jnd

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference.