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

question 171

Multiple Choice

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

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

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Definitions:

Not Egocentric

The ability to understand and be concerned with the perspectives and needs of others, rather than being focused solely on oneself.

Child

A young human being below the age of puberty or below the legal age of majority.

Theory Of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, understanding that others have beliefs, desires, and intentions that are different from one's own.

Infer

To deduce or conclude information from evidence and reasoning rather than from explicit statements.