In a Monopolistically Competitive Market, If Price Is Greater Than

question 336

Multiple Choice

In a monopolistically competitive market, if price is greater than average cost

• A) firms will enter.
• B) firms will exit.
• C) there will be no change in the number of firms.
• D) the market is in long-run equilibrium.

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Definitions:

Escaped Slaves

Individuals who fled from bondage in search of freedom, notably African Americans escaping the slaveholding Southern states before and during the Civil War.

Secede

To formally withdraw from an organization, union, or nation, often used in the context of states wishing to leave a federal union or country.

Fugitive Slaves

Escaped slaves from a slaveholding state to a free state or territory, often facing danger and hardship in their quest for freedom.

North Star

A prominent star, also known as Polaris, which is used for navigation due to its close alignment with the Earth's geographic north pole.