In Monopolistic Competition as Well as in Monopoly

question 10

Multiple Choice

In monopolistic competition as well as in monopoly,

• A)price exceeds marginal revenue for each firm.
• B)profit is zero in a long-run equilibrium for each firm.
• C)entry and exit by firms are unrestricted.
• D)there are at most a few firms in each market.

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Definitions:

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Incompetent

Lacking the necessary ability, legal qualification, or fitness to manage one's own affairs or to handle a particular task or situation.

Void

A term describing an agreement or contract that has no legal effect and cannot be enforced by law.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states.