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

question 133

Multiple Choice

The price in 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; higher
• B) higher; smaller
• C) lower; higher
• D) lower; smaller

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Definitions:

Rigidly

Rigidly refers to something done in a very strict or inflexible manner.

Decisions

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Long-Arm Statute

A law that allows a court to exercise personal jurisdiction over an out-of-state defendant due to their actions connected to the jurisdiction.

Nonresident Defendants

Individuals or entities against whom a legal action is brought who do not reside in the jurisdiction where the action is filed.