In Perfect Competition as Well as in Monopolistic Competition

question 421

Multiple Choice

In perfect competition as well as in monopolistic competition,

• A)marginal revenue is equal to price for each firm.
• B)profit is positive in a long-run equilibrium for each firm.
• C)entry and exit by firms are restricted.
• D)there are many firms in a single market.

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Definitions:

Pain Receptors

Specialized nerve endings that transduce pain stimuli into nerve signals that are interpreted by the brain as the sensation of pain.

Anticipation

The act of expecting or predicting something to happen based on prior knowledge or cues.

Sensations

The immediate experiences generated from the stimulation of sensory organs by external stimuli.

Substance P

A neuropeptide involved in the transmission of pain and other sensory signals to the brain, also implicated in inflammatory processes and mood regulation.