In the Long Run, What Level of Economic Profits Can

question 95

Multiple Choice

In the long run, what level of economic profits can a monopolistic competitor expect to receive?

• A) positive
• B) zero
• C) negative
• D) either negative or positive, depending on the demand for its product and its costs

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Definitions:

Business

The practice of making one's living by engaging in commerce, trading, or offering services.

Start

The beginning or initiation of an action, process, or operation.

General Partnership

A business structure where two or more individuals share ownership, profits, and responsibilities.

Liability

The state of being legally responsible for something, typically involving financial compensation for harm or damages.