Which of the Following Is True

question 224

Multiple Choice

Which of the following is true?

• A) The price charged by a monopolistically competitive firm is equal to the price charged by a perfectly competitive firm in the long run.
• B) The price charged by each firm in a monopolistically competitive market is identical in the long run.
• C) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a firm in a perfectly competitive market in the long run.
• D) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a monopolist in the long run.

---

Definitions:

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors.

Reliable

denotes something or someone that consistently performs well or can be depended upon to deliver accurate or expected results.

Quick Response

A strategy or system designed to rapidly fulfill customer orders, often used in manufacturing and retail to improve service levels.

Strategic Decision

A choice made by a company's top management about the direction and scope of the organization, often having long-term effects.