Which of the Following Is True of the Long-Run Equilibrium

question 5

Multiple Choice

Which of the following is true of the long-run equilibrium in a monopolistically competitive market?

• A) Monopolistically competitive firms make supernormal profits in the long run.
• B) Monopolistically competitive firms are productively efficient in the long run.
• C) Monopolistically competitive firms will produce where MC > MR in the long run.
• D) Monopolistically competitive firms will not produce at the minimum average total cost in

---

Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation alongside relaxation exercises.

Cognitive Therapy

A type of psychotherapy that addresses maladaptive patterns of thought to treat psychological disorders.

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers emphasizing the client's capacity for self-direction and understanding of one's own feelings.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic or anxiety responses by gradually exposing the person to the feared object or situation in a controlled manner.