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:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, aiming to provide a description of the set’s overall behavior.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, aiming to describe the data's center point.

Coding Errors

Errors or bugs in a programming code that prevent the software from running correctly or as intended.

Research Hypotheses

Statements made by researchers that propose a potential relationship between two or more variables.