In Its Long-Run Equilibrium, a Firm in Monopolistic Competition

question 147

Multiple Choice

In its long-run equilibrium, a firm in monopolistic competition

• A) makes zero economic profit and operates with excess capacity.
• B) makes zero economic profit and produces above capacity output.
• C) makes a positive economic profit and operates with excess capacity.
• D) makes a positive economic profit and produces above capacity output.

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Definitions:

Robert Sternberg

An American psychologist known for his work on intelligence, creativity, wisdom, and love, including the development of Sternberg's Triangular Model of Love.

Semanticity

The quality of language in which words are used as symbols for objects, events, or ideas.

Divergent Thinking

A thought process that attempts to generate multiple solutions to problems.

Convergent Thinking

A thought process that narrows in on the single best solution to a problem.