In the Long Run,a Profit-Maximizing Monopolistically Competitive Firm Sells at a Price

question 110

Multiple Choice

In the long run,a profit-maximizing monopolistically competitive firm sells at a price that is:

• A) equal to average total cost, but higher than marginal cost.
• B) equal to marginal cost and marginal revenue.
• C) equal to average total cost, but lower than marginal cost.
• D) equal to demand, but higher than average total cost and marginal cost.

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Definitions:

Evolutionary Theory

A scientific theory which posits that all species of organisms arise and develop through natural selection of small, inherited variations that increase the individual’s ability to compete, survive, and reproduce.

Social Learning Theorists

Scholars who study and explain how individuals learn social behaviors through observing others, imitating modeled behaviors, and being rewarded or punished.

Imitate Behaviours

The action of copying or mimicking the actions, speech, or mannerisms of others as a form of learning or social adaptation.

Evolved

Pertaining to the gradual development of something, often biological traits, over generations through the processes of natural selection and adaptation.