For a Profit-Maximizing Monopolistically Competitive Firm, Price Exceeds Marginal Cost

question 339

Multiple Choice

For a profit-maximizing monopolistically competitive firm, price exceeds marginal cost in

• A)the short run but not in the long run.
• B)the long run but not in the short run.
• C)both the short run and the long run.
• D)neither the short run nor the long run.

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Definitions:

Liability on Debts

The legal responsibility to pay money owed to creditors, either by an individual or a company.

Capital Contribution

Funds or assets provided by investors or partners to a company or partnership to support its operations and growth.

Partnership Assets

Properties or resources owned by a partnership that are used for the purpose of carrying on the partnership business.

Successor's Liability

The legal responsibility of a successor entity to bear the liabilities of its predecessor under certain conditions.