In the Long Run,both Monopolistic Competition and Competitive Markets Result

question 20

Multiple Choice

In the long run,both monopolistic competition and competitive markets result in

• A) a wide variety of brand-name choices for consumers.
• B) an inefficient allocation of resources.
• C) zero economic profit for firms.
• D) excess capacity.
• E) insufficient capacity.

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Definitions:

Asset

Resources owned by a business or individual that have economic value or future benefit.

Liability Account

A liability account records the obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.

Asset Account

An account on a company's balance sheet that represents a resource with economic value owned or controlled with the expectation that it will provide future benefit.

Expense Account

An account that tracks money spent on business operations, often categorized for budgeting and tax purposes.