Suppose That a Firm in a Monopolistically Competitive Market Has

question 213

Multiple Choice

Suppose that a firm in a monopolistically competitive market has a constant marginal cost and it is making a positive profit in the short run.What will happen in the long-run equilibrium?

• A) The firm will keep producing the same quantity but earn zero profit.
• B) The firm will produce zero units and earn zero profit.
• C) The firm will produce more but earn zero profit.
• D) The firm will produce less but earn a positive profit.

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Definitions:

Minutes

A unit of time equal to sixty seconds or one-sixtieth of an hour.

Perceived Exertion Scale

A self-assessment tool used to measure the intensity of one's physical activity based on personal sensations of effort, breathlessness, and fatigue.

Exercise Intensity

The level of effort or exertion that an individual puts into physical activity, often categorized as low, moderate, or high.

Trimester

A term often used in pregnancy to divide the nine months into three periods of approximately three months each, for the purpose of tracking fetal development and maternal health.