Consider a Monopolistically Competitive Firm in a Market in Long-Run

question 35

Multiple Choice

Consider a monopolistically competitive firm in a market in long-run equilibrium.This firm is likely

• A)earning a positive economic profit since it is charging a price above marginal cost.
• B)earning no economic profit since it is charging a price equal to its marginal cost.
• C)earning a positive economic profit since it is charging a price above its average total cost.
• D)earning no economic profit since it is charging a price equal to it average total cost.

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Definitions:

Emotional Component

An aspect of a phenomenon that relates to feelings, emotions, and affective states of individuals involved.

Cognitive Dissonance

The psychological discomfort experienced when holding two conflicting beliefs, attitudes, or values simultaneously.

Consonance

A harmonious agreement or compatibility among the components of a system, philosophy, or group, often leading to a coherent and unified whole.

Emotional Contagion

A dynamic process through which the emotions of one person are transferred to another, either consciously or unconsciously, through nonverbal channels.