When a Profit-Maximizing Firm in a Monopolistically Competitive Market Charges

question 212

Multiple Choice

When a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost,

• A)the firm must be earning a positive economic profit.
• B)the firm may be incurring economic losses
• C)there is a deadweight loss to society, but it is exactly offset by the benefit of excess capacity.
• D)new firms will enter the market in the long run.

---

Definitions:

Adolescents

Individuals in the transitional stage of physical and psychological development that typically occurs during the period from puberty to legal adulthood.

Middle-Aged Adults

Middle-Aged Adults typically refers to individuals who are in the age range of approximately 45 to 65 years, often experiencing shifts in physical health, cognitive function, and social roles.

Older Adults

Individuals generally aged 65 years and older, often discussed in contexts related to health, social needs, and policy planning.

Somatic Symptom

A physical symptom that is caused or exacerbated by mental factors, often part of a somatic symptom disorder.