Which of the Following Statements Best Describes the Price, Output

question 47

Multiple Choice

Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?

• A) Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run.
• B) Price will always equal average variable cost in the short run and either profits or losses may result in the long run.
• C) Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero.
• D) Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.

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Definitions:

Tairona Pendants

Artifacts made by the Tairona civilization, indigenous to present-day Colombia, known for their intricate goldsmithing and symbolic designs.

Hammered Gold

A technique in metalwork where gold is shaped and textured through the process of hammering to create objects or decorative elements.

Amulets and Talismans

Objects believed to possess magical or sacral properties, providing protection or bringing luck to the wearer or holder.

Adena

A prehistoric Native American culture that existed in the Ohio Valley area (United States) known for its burial mounds and earthworks.