The Entry and Exit of Firms in a Monopolistically Competitive

question 196

Multiple Choice

The entry and exit of firms in a monopolistically competitive market guarantee that

• A)marginal revenue equals marginal cost and average total cost is minimized.
• B)firms can earn economic profits in the long run.
• C)price equals average total cost in the long run.
• D)firms can earn economic profits in the short run.

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Definitions:

Hardy-Weinberg Equilibrium

A principle that states the genetic variation in a population will remain constant from one generation to another in the absence of disturbing factors.

Heterozygotes

Individuals having two different alleles of a particular gene, resulting in a mixture of genetic traits.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical significance testing.

Allele Frequencies

The proportion of different genetic variants of a gene in a population, denoting the genetic diversity at that specific locus.