A Firm in Long-Run Equilibrium Under Monopolistic Competition Will Earn

question 2

Multiple Choice

A firm in long-run equilibrium under monopolistic competition will earn

• A) zero economic profits because of free entry.
• B) positive monopoly profits because each sells a differentiated product.
• C) positive oligopoly profits because each firm sells a differentiated product.
• D) negative economic profits because it has economies of scale.
• E) positive economic profit if it engages in international trade.

---

Definitions:

Economic Resources

Assets, capital, and other resources available for use in the production and consumption of goods and services.

Evolutionary Psychologists

Researchers who focus on how evolutionary principles explain human thoughts, feelings, and behaviors through the lens of adaptation and survival.

Mates

Individuals paired for reproduction or considered as partners in a romantic or sexual relationship.

Evolutionary Perspective

An approach in psychology that examines human thought and behavior through the lens of natural selection and adaptation.