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

question 147

Multiple Choice

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

• A) makes zero economic profit and operates with excess capacity.
• B) makes zero economic profit and produces above capacity output.
• C) makes a positive economic profit and operates with excess capacity.
• D) makes a positive economic profit and produces above capacity output.

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Definitions:

Formalization

The process of establishing official procedures, rules, and documentation within an organization.

Work Processes

The established methods and procedures used to effectively complete tasks and achieve organizational goals.

Functional Structure

An organizational design that groups employees by their similar specialties, roles, or tasks.

Dysfunctional Conflict

A type of conflict that hinders organizational performance, disrupts operations, and negatively impacts the workplace environment.