Which of the Following Is a Difference Between a Monopolistically

question 119

Multiple Choice

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

• A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist usually earns positive economic profits in the long run.
• B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist incurs losses in the long run.
• C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while a monopolist charges 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 a monopolist charges a price equal to marginal cost in the long run.

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Definitions:

Evidence

Information or facts presented in support or against a hypothesis or claim.

Drug

A substance used to diagnose, cure, treat, or prevent disease, or to enhance physical or mental well-being.

Hypotheses

Proposed explanations or predictions that are based on limited evidence as a starting point for further investigation.

Defective Components

Refers to parts or elements of a system that do not meet quality specifications or perform as intended.