Which of the Following Is True in Monopolistic Competition

question 40

Multiple Choice

Which of the following is true in monopolistic competition?

• A)In the long run, the monopolistically competitive firm earns positive economic profit.
• B)In the long run, monopolistic competition produces the output that would minimise average total cost.
• C)In the long run, monopolistic competition produces less than the output that would minimise average total cost.
• D)In the long run, the monopolistically competitive firm charges the same price as a monopoly.

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Definitions:

Fair Housing Act

A U.S. law that aims to prevent discrimination when renting or selling housing based on race, religion, sex, national origin, disability, or family status.

Negligent

The failure to take reasonable care or measures to prevent harm or damage, leading to liability for any resulting damages.

Waste

Permanent and substantial injury to a landlord's property.

Legal Liability

The responsibility of an individual or entity for actions or omissions that result in harm or loss to another party, subject to legal sanctions.