For a Profit-Maximizing Monopolistically Competitive Firm, Price Exceeds Marginal Cost

question 339

Multiple Choice

For a profit-maximizing monopolistically competitive firm, price exceeds marginal cost in

• A)the short run but not in the long run.
• B)the long run but not in the short run.
• C)both the short run and the long run.
• D)neither the short run nor the long run.

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Definitions:

Specialization

Focus on a particular area of study or work, leading to increased efficiency and expertise in that domain.

Higher Total Output

Indicates an increased overall level of production or sum of goods and services produced within an economy.

Resource Endowments

The natural, human, and capital resources that a country or region possesses, determining its economic potential and development opportunities.

Technological Capabilities

Refers to the knowledge, equipment, and processes that an organization has at its disposal to develop new products or improve existing ones.