In the Long Run, the Output of a Monopolistically Competitive

question 94

Multiple Choice

In the long run, the output of a monopolistically competitive firm will be:

• A)less than the efficient scale at zero economic profit
• B)greater than the efficient scale at a positive economic profit
• C)equal to the efficient scale at a zero economic profit
• D)consistent with diseconomies of scale

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Definitions:

Pluralistic Ignorance

A psychological phenomenon in which individuals mistakenly believe that their own attitudes and beliefs are different from those of the majority, often leading to conformity.

Social Psychologists

Experts who study how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Better-informed Opinion

An opinion based on comprehensive, accurate information and understanding.

Inconsistency

The state of being irregular or not remaining the same over time.