Because a Monopolistically Competitive Firm Has Some Market Power,in the Long-Run

question 118

Multiple Choice

Because a monopolistically competitive firm has some market power,in the long-run what does the price of its good exceed

• A)its average revenue
• B)its average total cost
• C)its marginal cost
• D)its profit per unit

---

Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, usually the currency in which it primarily generates and spends cash.

Other Expenses

Costs that fall outside of a company's primary operating activities, such as administrative expenses or interest payments.

Exchange Rates

The frequency at which currencies from different countries can be exchanged, playing a role in international trading and investment schemes.

Foreign Subsidiary

A company that is partly or wholly owned by another company, known as the parent company, and is located in a different country.