In the Long Run, the Economic Profits for a Monopolistically

question 65

Multiple Choice

In the long run, the economic profits for a monopolistically competitive firm will be

• A) the same as the profits for a monopolist.
• B) slightly less than the profits of a monopolist.
• C) the same as the profits for a purely competitive firm.
• D) slightly more than the profits of a purely competitive firm.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output produced, such as rent, salaries, and insurance.

Real Opportunity Cost

The value of the best alternative forgone as a result of making a particular choice, expressed in terms of real goods and services.

Producing Product

The process of creating goods or services that are offered in the market for consumption or use.

Resources

Assets or inputs used to produce goods and services.