A Monopolistically Competitive Firm Is Making a Positive Economic Profit

question 80

Multiple Choice

A monopolistically competitive firm is making a positive economic profit. In the long run, which of the following is most likely?

• A) It will produce less output but keep price the same.
• B) It will keep output the same but will charge a higher price.
• C) It will produce less output and it will charge a lower price.
• D) It will produce the same output and charge the same price.

---

Definitions:

Chemical Sense

Chemical sense refers to the sensory systems, specifically taste and smell, that rely on the detection of chemical substances in the environment.

Smell

The sense that enables the detection of chemical molecules in the air, leading to the perception of odors.

Kinesthesia

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints, enabling bodily movements coordination.

Sense Of Taste

The sensory experience associated with the flavors of substances, including the five basic tastes: sweet, sour, salty, bitter, and umami.