If Price Is Less Than Average Cost in a Monopolistically

question 352

Multiple Choice

If price is less than average cost in a monopolistically competitive market

• A) there is an incentive for firms to exit the market.
• B) there is profit incentive for firms to enter the market.
• C) the market must be in long-run equilibrium.
• D) there is no incentive for the number of firms in the market to change.

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Definitions:

Compliance

The action or process of complying with a command, law, or request.

Parenting Style

The manner in which parents raise and guide their children, characterized by various approaches such as authoritative, permissive, and authoritarian.

Working-Class

A social group consisting of people employed in lower-tier jobs, often involving manual labor and receiving lower pay.

Mass Schooling

The systematized education of large groups of individuals within a society, typically provided by the government or state at no immediate cost to the individual.