The Price in a Long-Run Equilibrium for a Monopolistically Competitive

question 25

Multiple Choice

The price in a long-run equilibrium for a monopolistically competitive firm is __________and output is , compared to that of a perfectly competitive firm with an identical production function and cost curves.

• A)higher; greater .
• B)higher; smaller
• C)lower; greater
• D)lower; smaller

---

Definitions:

Strict Interpretation

The judicial practice of applying a narrow, literal, and precise reading of legal texts or statutes.

Force Majeure Clause

A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract.

Catastrophic Event

An unexpected, large-scale disaster that causes significant -physical, economical or environmental damage or loss of life.

Condition Subsequent

A contract condition that, when it occurs, ends the party's obligation to perform under the contract.