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.

---

Definitions:

Business-to-Business Marketing

Marketing efforts directed from one company to another, rather than to individual consumers.

Not-for-Profit Organizations

Entities that operate for purposes other than making a profit, often focusing on social, educational, or humanitarian objectives.

Ultimate Consumers

The end users of a product or service, typically individuals who purchase for personal use rather than for resale or manufacturing.

Organizational Buyers

Entities such as businesses, governments, and institutions that purchase goods and services for organizational use, not for personal consumption.