A Monopolistically Competitive Firm and a Monopoly Are Similar Because

question 94

Multiple Choice

A monopolistically competitive firm and a monopoly are similar because

• A)both firms will earn zero profits in the long run.
• B)both firms always operate at their point of minimum average cost.
• C)each firm can raise its price without losing all of its sales.
• D)both firms must behave strategically toward other firms in the industry.
• E)each firm has a large number of competitors.

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Definitions:

Contradictions

Situations or statements that are in opposition to one another, presenting conflicting ideas or evidence.

Interesting Insight

A fascinating or thought-provoking observation or understanding derived from data, experience, or study.

Observe

To carefully watch, study, or monitor someone or something to gather information.

Body Language

Nonverbal communication through physical behaviors, such as gestures, facial expressions, and posture, which convey feelings and intentions.