Long-Run Equilibrium Under Monopolistic Competition Requires That

question 10

Multiple Choice

Long-run equilibrium under monopolistic competition requires that

• A)the demand curve intersects the average cost curve.
• B)the demand curve be tangent to the average cost curve.
• C)price be equal to marginal cost.
• D)quantity produced be at the point where average cost is at a minimum.

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Definitions:

Social Facilitation

Improvement in an individual’s performance because of the presence of others.

Solomon Asch

A psychologist best known for his research on group conformity and social pressure influencing individuals' judgments and perceptions.

Conformity

A change in a person’s behavior to coincide more closely with a group standard.

Obedience

A form of social influence where an individual acts in response to a direct order from another individual, typically an authority figure.