Which of the Following Is a Difference Between a Monopolistically

question 247

Multiple Choice

Which of the following is a difference between a monopolistically competitive market and a perfectly competitive market in the long run?

• A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market earn positive economic profits in the long run.
• B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market incur losses in the long run.
• C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
• D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.

Identify fiscal policy measures for addressing budget deficits and national debt.

Evaluate the effectiveness and timing of fiscal stimulus packages.

Understand the significance of balancing the budget over the business cycle.

Assess the implications of the crowding-out effect on economic activity.

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Definitions:

Applied Voltage

The voltage that is externally applied to an electrical device or circuit to initiate the flow of current.

R1

Often denoted as a variable for resistance in electrical equations and diagrams, representing a specific resistor's ohmic value.

Junction Point

A point in an electrical circuit where multiple conductors or components are connected.

Current Paths

Paths followed by electrical current in a circuit.