The Less Elastic a Monopolistic Competitor's Long-Run Demand Curve, the

question 171

Multiple Choice

The less elastic a monopolistic competitor's long-run demand curve, the

• A) greater its excess capacity.
• B) lower its price relative to that of a pure competitor having the same cost curves.
• C) higher its long-run economic profit.
• D) lower its average total cost at its equilibrium level of output.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to unify business laws across states.

Statute of Frauds

This refers to a legal concept requiring certain types of contracts to be in writing and signed in order to be legally enforceable.

Prenuptial Agreement

A legal contract entered into before marriage specifying the distribution of assets and financial responsibilities in the event of divorce or death.

Donee Beneficiary

A third party who benefits from a contract in which a promisor agrees to give a gift to the third party.