In Long-Run Equilibrium,a Firm in Monopolistic Competition Makes

question 1

Multiple Choice

In long-run equilibrium,a firm in monopolistic competition makes

• A) an economic profit but the economic profit is less than it would be if the firm was a monopoly.
• B) an economic profit that is higher than what it would be if the firm was a monopoly.
• C) zero economic profit.
• D) an economic profit that is the same amount as it would be if the firm was a monopoly.
• E) an economic profit, an economic loss, or zero economic profit.

---

Definitions:

Asset Section

A part of a financial statement that lists all the assets owned by an individual or organization.

Services Revenue

Income generated from services provided by a company rather than from selling physical goods.

Going Concern Assumption

The accounting principle that assumes a company will continue to operate in the foreseeable future, and not liquidate its assets.

Accounting Information

Data related to financial transactions and status of a business, used for analysis, planning, and decision-making purposes.