The Short-Run Equilibrium Position for a Firm in Monopolistic Competition

question 114

Multiple Choice

The short-run equilibrium position for a firm in monopolistic competition is the point at which:

• A)price equals average variable cost.
• B)marginal revenue equals rising marginal cost.
• C)price equals marginal cost.
• D)marginal revenue equals average revenue.
• E)the firm's marginal-cost curve intersects its marginal-revenue curve from above.

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Definitions:

Deposited

Placing funds into a bank account or making an investment where the money is held under a specific condition.

Economic Value

The worth of a good or service determined by its ability to satisfy needs or wants; measured by the maximum amount a consumer is willing to pay.

Interest Rate

The proportion of a total amount of money that is required as payment for borrowing it, usually described as a yearly percentage rate.

Equivalent

Something that is equal in value, function, amount, or meaning to something else.