An Important Difference Between the Situation Faced by a Profit-Maximizing

question 629

Multiple Choice

An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run,

• A)price may exceed marginal revenue, but in the long run, price equals marginal revenue.
• B)price may exceed marginal cost, but in the long run, price equals marginal cost.
• C)price may exceed average total cost, but in the long run, price equals average total cost.
• D)there are many firms in the market, but in the long run, there are only a few firms in the market.

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Definitions:

Type A Behavior

A behavioral pattern characterized by aggression, competitiveness, impatience, and a sense of urgency, often linked to stress and heart disease.

Hostile

Exhibiting or feeling antagonism or enmity towards someone or something, often resulting in aggressive behavior.

Excessively Competitive

Displaying an extreme or intense desire to win or outperform others beyond what is considered normal or healthy.

Angered Easily

A characteristic describing individuals who have a low threshold for anger, often reacting with frustration or hostility to situations that others might find tolerable.