Excess Capacity Occurs in Long-Run Equilibrium Under Monopolistic Competition So

question 147

Multiple Choice

Excess capacity occurs in long-run equilibrium under monopolistic competition so that:

• A) price is less than marginal cost.
• B) price exceeds minimum average cost.
• C) marginal revenue exceeds price.
• D) all of the above occur.

---

Definitions:

Laboratory Animals

Animals that are specially bred and used for scientific research and experiments.

Clark Hull

An influential psychologist known for his drive-reduction theory of learning and motivation, emphasizing the role of biological needs in behavior.

Mental Illness

A wide variety of psychological disorders that influence one's emotions, thought processes, and actions.

Maze Learning

A cognitive process and experimental method used to study spatial navigation and learning capabilities in animals and humans.