In the Long Run, Both Monopolistically Competitive and Perfectly Competitive

question 56

Multiple Choice

In the long run, both monopolistically competitive and perfectly competitive firms attain

• A) lowest cost production.
• B) positive economic profits.
• C) zero economic profits.
• D) productive efficiency.

---

Definitions:

Common Law

A legal system based on customs, traditions, and judicial decisions or precedents, rather than on codified written laws.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Adequacy of Consideration

An evaluation of whether the value exchanged between parties in a contract is reasonably fair at the time of the agreement.

Bargained-for Exchange

An essential principle of contract law involving the mutual exchange of promises or consideration between parties entering an agreement.