The More Elastic a Monopolistic Competitor's Long-Run Demand Curve, the

question 94

Multiple Choice

The more elastic a monopolistic competitor's long-run demand curve, the

• A) greater its excess capacity.
• B) higher its price relative to that of a pure competitor having the same cost curves.
• C) lower its long-run economic profit.
• D) lower its average total cost at its profit-maximizing level of output.

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Definitions:

Sugarcane

A tropical grass from which sugar is extracted, known for its tall stalks rich in sucrose.

Gibberellins

A class of plant hormones that promote growth and influence various developmental processes, including stem elongation, germination, and flowering.

Zeatin

A type of cytokinin, which is a plant hormone that promotes cell division, growth, and leaf expansion.

Day-Neutral

Plants that flower regardless of the length of the day, not specifically triggered by long or short day lengths.