In the Long Run, the Prices Charged by a Firm

question 73

Multiple Choice

In the long run, the prices charged by a firm in monopolistic competition will be

• A)high enough to provide profits to the firm.
• B)so low that many firms will drop out of the industry.
• C)equal to marginal cost.
• D)equal to average cost, including the opportunity cost of capital.

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Definitions:

Coding

Coding involves translating and structuring data or instructions into a form that is understandable by computers and software systems to perform specific tasks.

Adopted on Impulse

refers to making a purchase or decision based on spontaneous desire rather than careful thought.

Regression Stage

A phase of development or transition characterized by a return to earlier patterns of behavior, often as a response to stress or trauma.

Trickle-across Effect

A trend diffusion process where fashion and ideas move horizontally within similar social levels or groups.