Which of the Following Is Correct

question 206

Multiple Choice

Which of the following is correct?

• A) A firm in monopolistic competition does not have excess capacity in the long run.
• B) A firm in perfect competition operates at maximum average total cost in the long run.
• C) In the long run, a firm in monopolistic competition maximizes its profit at a point where price is equal to average total cost but the average total cost is not minimized.
• D) In the long run, a firm in monopolistic competition makes zero economic profit and its price is equal to the minimum average total cost.
• E) In the long run, a firm in monopolistic competition can make an economic profit because of product differentiation.

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Definitions:

Competitive Or Ambitious

Describes individuals or behaviors driven by the desire to succeed or excel over others.

Easy-Going

Describes a person who is relaxed, tolerant, and not easily upset or stressed.

Inferiority Feelings

Emotions characterized by a lack of self-worth or a perception of being less valuable or capable in comparison to others.

Later-Borns

Individuals born later in the birth order of a family, who may experience different developmental dynamics than firstborns.