A More Appropriate Assumption Than Ethnocentrism, Which Instead States That

question 21

Multiple Choice

A more appropriate assumption than ethnocentrism, which instead states that "our way is one possible way," is

• A) Similarity and difference.
• B) Parochialism.
• C) Culture contingency.
• D) Equifinality.
• E) Heterogeneity.

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Definitions:

Long-Run Profits

Earnings that a firm expects to generate over an extended period, taking into account all variable and fixed costs.

Excess Capacity

The situation where a firm produces less than its total output capacity, often due to lack of demand.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Long-Run Equilibrium

A state in which all inputs can be adjusted by firms, market supply equals demand, and there is no incentive for economic actors to alter their behavior.