The Entry and Exit of Firms in a Monopolistically Competitive

question 196

Multiple Choice

The entry and exit of firms in a monopolistically competitive market guarantee that

• A)marginal revenue equals marginal cost and average total cost is minimized.
• B)firms can earn economic profits in the long run.
• C)price equals average total cost in the long run.
• D)firms can earn economic profits in the short run.

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Definitions:

Equality Matching

A principle of social justice where individuals aim to ensure fairness and equality by treating each person the same, often by sharing resources equally.

Community Sharing

A social arrangement characterized by the collective ownership and use of resources among community members.

Metaphysical Environment

An abstract concept referring to environments or conditions that go beyond the physical realm, often relating to philosophical or spiritual aspects.

Anthropologist

A scientist who studies human societies, cultures, and their development.