Exhibit 10-2 a Monopolistic Competitive Firm

question 5

Multiple Choice

Exhibit 10-2 A monopolistic competitive firm

To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 10-2 will charge a price per unit of:

• A) zero.
• B) $5.
• C) $10.
• D) $15.

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Definitions:

Receptor Neurons

Specialized nerve cells that respond to chemical and physical stimuli in the environment, sending signals to the brain.

Scents

Volatile substances that can be perceived by the sense of smell, often used by organisms to communicate, forage, or detect predators or mates.

Supertasters

Individuals with an enhanced genetic sensitivity to certain tastes, particularly bitter flavors.

Olfactory Epithelium

The specialized tissue inside the nasal cavity involved in smell; it houses olfactory receptors that detect odors.