Long-Run Equilibrium in Perfect Competition and in Monopolistic Competition Are

question 101

Multiple Choice

Long-run equilibrium in perfect competition and in monopolistic competition are similar because in both models, firms:

• A) produce at the minimum point of the average total cost curve.
• B) set price equal to marginal cost.
• C) make zero economic profits.
• D) have excess capacity.

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Definitions:

Definite Channel

A specific, established pathway through which information or goods are directed.

Organization

An entity comprising multiple people, such as a business or an association, structured to pursue collective goals.

Reinforcement

A principle in behavior psychology that strengthens a behavior by providing a consequence that is rewarding or desirable.

Social Support

The various types of aid and assistance provided by members of one's social network, which can include emotional, informational, or physical support.