In the Long Run, the Prices Charged by a Firm

question 73

Multiple Choice

In the long run, the prices charged by a firm in monopolistic competition will be

• A)high enough to provide profits to the firm.
• B)so low that many firms will drop out of the industry.
• C)equal to marginal cost.
• D)equal to average cost, including the opportunity cost of capital.

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Definitions:

Staff Experience

The collective knowledge, skills, and expertise that employees bring to their workplace.

Supply-Chain Management

The administration of goods and services' flow, which includes the transportation and storage of raw materials, inventory in progress, and completed products from their starting location to their end-use destination.

Profit Margin

Measures how much out of every dollar of sales a company actually keeps in earnings, a key indicator of financial health and pricing strategies.