In the Long Run, a Representative Firm in a Monopolistically

question 105

Multiple Choice

In the long run, a representative firm in a monopolistically competitive industry will end up

• A)having an elasticity of demand that will be less than it was in the short run.
• B)having a larger number of competitors than it will in the short run.
• C)producing a level of output at which marginal cost and price are equal.
• D)earning a normal profit, but not an economic profit.

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Definitions:

Inherent Right

A fundamental right believed to be possessed by all individuals inherently, often referring to basic human rights.

Self-Government

The ability of a community, group, or nation to govern itself without external control, often through democratic processes.

Aboriginal People

Indigenous people native to a land or country, especially those with a long history and cultural heritage predating colonialism.

Domination

The exercise of power over a group of people to direct them to comply with specific commands.