In Long Run Equilibrium, a Monopolistic Competitive Firm's Price Will

question 108

Multiple Choice

In long run equilibrium, a monopolistic competitive firm's price will most likely be

• A)equal to average total cost, but higher than marginal cost.
• B)greater than both average total cost and marginal cost.
• C)less than both average total cost and marginal cost.
• D)equal to marginal cost, but higher than average total cost.

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Definitions:

Existing Schemas

Established sets of mental frameworks or patterns that individuals use to organize and interpret information based on their past experiences and knowledge.

Assimilation

The process by which individuals or groups of differing cultural backgrounds are absorbed into the dominant culture of a society.

Egocentrism

In Piaget’s theory, the preoperational child’s difficulty taking another’s point of view.

Accommodation

In psychology, a cognitive process of altering one's existing schemas, perceptions, and understanding so as to adapt to new information.