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:

Materials Cost

The total expense incurred for the materials that are used in the production of goods or services.

Purchase Order

A document generated by a buyer and sent to a seller specifying products or services to be purchased.

Sales Order

A document created by a seller upon the receipt of an order from a customer, detailing the products or services ordered and the terms of the sale.

Supplies Inventory

The stock of necessary supplies and materials held by a business for its daily operations or production activities.