The Following Question Are Based on the Following Diagram for a Monopolistically

question 46

Multiple Choice

The following question are based on the following diagram for a monopolistically competitive firm:

-This short-run equilibrium price

• A) is also the long-run equilibrium price.
• B) is not profitable for the monopolistic competitor.
• C) requires the firm to advertise to avoid continuing to lose money.
• D) equals marginal cost.
• E) will not be sustained because there is an incentive for entry.

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Definitions:

W. Edward Deming

An American engineer, statistician, and management consultant known for his work in the field of quality management and his contribution to Japan's industrial recovery post-World War II.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge, skills, and values, improving its effectiveness over time.

David A. Garvin

A renowned academic and author known for his contributions to the fields of business management and quality management.

Boundary-Spanning Subsystem

Part of an organization that interacts with the external environment, facilitating the input and output transactions between the organization and its external stakeholders.