With Regard to the Long- Run Equilibrium in the Two

question 53

Multiple Choice

With regard to the long- run equilibrium in the two market structures, the higher unit costs in monopolistic competition relative to perfect competition implies that

• A) resources are being used inefficiently in perfect competition.
• B) the government should force monopolistically competitive firms to behave like perfectly competitive firms.
• C) there is a tradeoff between product variety and the ability to minimize cost per unit.
• D) firms are restricting output to extract positive economic profits.
• E) society would be better off if there were fewer, and more homogeneous, goods produced at the scale at which average costs are minimized.

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Definitions:

Phoneme Change

The alteration in the sound of a phoneme, which can significantly affect the meaning of words in a language.

Sucking Rate

The frequency at which an infant or other entity performs the act of sucking, often measured during feeding or in response to stimuli.

Hearing Capacity

The ability or range within which one can perceive sounds, varying greatly among individuals and species.

Dishabituation

The term used to describe the process in which an infant’s interest is renewed after a change in the stimulus.