A Monopolistic Competitor Is Like a Competitive Firm in the Long

question 251

Multiple Choice

A monopolistic competitor is like a competitive firm in the long run, because

• A) it earns positive economic profits.
• B) it earns zero economic profits
• C) both firms will earn positive economic profits.
• D) both firms will increase price to increase profits.

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Definitions:

Negotiable Document

A written instrument that promises payment to the holder and is freely transferable.

Identified

Recognized or distinguished as being a particular entity or object.

Tendered

The act of presenting for acceptance; in legal and financial contexts, it often refers to offering payment or delivering goods as part of fulfilling a contract.

Liable

Liable refers to being legally responsible to someone else for damages or losses.