Assuming Identical Production Functions and Cost Curves, the Long-Run Equilibrium

question 23

Multiple Choice

Assuming identical production functions and cost curves, the long-run equilibrium of a monopolistically competitive firm, as compared with a perfectly competitive firm, is such that, for the former, price is:

• A) higher and output is greater.
• B) higher and output is smaller.
• C) lower and output is greater.
• D) lower and output is smaller.

Know observational techniques and their context of use.

Critically analyze the use of surveys for gathering data.

Understand the basic concepts and types of statistics in research.

Recognize the limitations of descriptive/correlational research in establishing causality.

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