In Long-Run Equilibrium,a Firm in Monopolistic Competition

question 133

Multiple Choice

In long-run equilibrium,a firm in monopolistic competition

• A)makes zero economic profit and operates with excess capacity.
• B)makes zero economic profit and produces above capacity output.
• C)makes a positive economic profit and operates with excess capacity.
• D)makes a positive economic profit and produces above capacity output.
• E)incurs an economic loss and exits the market.

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Definitions:

Outsourcing

The practice of hiring external firms to perform tasks, handle operations, or provide services that are either difficult to manage or outside the company's expertise.

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Statistical Method

A technique or procedure applied to numerical data for the purpose of analyzing, interpreting, or explaining statistical phenomena.

Employee Leasing

A practice where businesses hire their workers through a professional employer organization, which then handles HR, payroll, and other administrative tasks.