In Long-Run Equilibrium in Monopolistic Competition

question 37

Multiple Choice

In long-run equilibrium in monopolistic competition:

• A)marginal cost is greater than price.
• B)marginal cost is equal to price.
• C)marginal cost is less than price.
• D)the relationship between marginal cost and price is not predictable.

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Definitions:

Cash Dividend

A distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.