Monopolistic Competition in Long-Run Equilibrium Is Characterized by

question 77

Multiple Choice

Monopolistic competition in long-run equilibrium is characterized by

• A)excess capacity.
• B)higher cost per unit of output than under perfect competition.
• C)inefficiency in use of resources.
• D)All of the responses are correct.

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Definitions:

Infinite Duration

A term used to denote a period that does not have an end or limit.

Fixed-Term Tenancy

A type of tenancy under which property is leased for a specified period of time, such as a month, a year, or a period of years; also called a tenancy for years.

Sublet

Refers to the act of a tenant renting out a space they have leased to another party.

Community Property

A form of concurrent property ownership in which each spouse owns an undivided one-half interest in property acquired during the marriage.