Long-Run Equilibrium Under Monopolistic Competition Is Similar to That Under

question 10

Multiple Choice

Long-run equilibrium under monopolistic competition is similar to that under perfect competition in that

• A)firms produce at the minimum point of their average cost curves.
• B)price equals marginal cost.
• C)firms earn normal profits.
• D)price equals marginal revenue.

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Definitions:

Attention

Actively paying attention to a specific part of the environment, while omitting to notice other aspects.

Motor Reproduction

In the context of social learning theory, it refers to the physical ability to replicate the observed actions of a model.

Observational Learning

A learning process whereby individuals acquire new behaviors by watching and imitating others.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.