In the Long Run, the Prices Charged by a Firm

question 73

Multiple Choice

In the long run, the prices charged by a firm in monopolistic competition will be

• A)high enough to provide profits to the firm.
• B)so low that many firms will drop out of the industry.
• C)equal to marginal cost.
• D)equal to average cost, including the opportunity cost of capital.

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Definitions:

Homogenous Group

A group composed of members with similar backgrounds, characteristics, or beliefs.

Social Sensitivity

The ability to perceive and understand the emotions and cues of others in social interactions.

Social Loafing

The tendency of individuals to reduce their effort when working in a group, compared to when they are working alone.

Target Completion Date

The specifically designated day by which a task or project is expected to be finished.