Because a Monopolistically Competitive Firm Has Some Market Power, in the Long

question 211

Multiple Choice

Because a monopolistically competitive firm has some market power, in the long run the price of its good exceeds its:

• A)average revenue
• B)total cost
• C)average cost
• D)marginal cost

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Definitions:

Joint Probability

The likelihood of two events occurring simultaneously.

Independent

Not influenced or controlled by others; in statistics, refers to variables that are not related or do not affect each other.

Marginal Probability

The probability of an event occurring, disregarding all other variables or outcomes in a probability distribution.

E(XY)

The expected value of the product of two random variables X and Y, indicating their joint mean over all pairs of outcomes.