In the Long Run, the Equilibrium Number of Monopolistically

question 127

Multiple Choice

In the long run, the equilibrium number of monopolistically
Competitive firms with trade:

• A)is less than the total number of firms worldwide in autarky.
• B)is the same as the total number of firms worldwide in autarky.
• C)is greater than the total number of firms worldwide in autarky.
• D)may be less than, the same as, or greater than the total number of firms worldwide in autarky.

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Definitions:

Pure Monopolist

A single seller in a market that has complete control over the supply of a product and where no close substitutes exist.

Reselling

The act of selling again or selling something that has already been sold or owned, often seen in markets for goods like tickets, merchandise, and real estate.

Average Total Costs

The average cost for each unit produced, found by dividing the full cost of production by the quantity of units produced.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price changes.