In the Short Run, for a Firm in Monopolistic Competition

question 61

Multiple Choice

In the short run, for a firm in monopolistic competition

• A) the firm's economic profit must equal zero.
• B) marginal revenue exceeds marginal cost.
• C) price exceeds marginal cost.
• D) the firm is a price taker.

---

Definitions:

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Year 2

Refers to the second year of a project, company's fiscal year, or any specified time period.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over during a period.

Average Sale Period

The average amount of time it takes for a business to sell its inventory, also known as inventory turnover period.