When a Profit-Maximizing Firm in a Monopolistically Competitive Market Is

question 167

Multiple Choice

When a profit-maximizing firm in a monopolistically competitive market is producing the long-run equilibrium quantity,what is the result

• A)Its average revenue will equal its marginal cost.
• B)Its marginal revenue will be tangent to its marginal cost.
• C)It will be earning positive economic profits.
• D)Its demand curve will be tangent to its average-total-cost curve.

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Definitions:

Interposition

A visual cue in which one object partially blocks another, indicating depth perception in visual field.

Perceptual Set

A psychological framework or expectation that significantly influences one’s perception of sensory information.

Psychokinesis

The supposed ability to move objects by mental effort alone.

Retinal Disparity

The difference in visual images that each eye perceives because of the eyes’ different positions, contributing to depth perception.