In the Long Run,a Representative Firm in a Monopolistically Competitive

question 131

Multiple Choice

In the long run,a representative firm in a monopolistically competitive industry will typically:

• A) have an elasticity of demand that will be less than it was in the short run.
• B) have a larger number of competitors than it will in the short run.
• C) produce a level of output at which marginal cost and price are equal.
• D) earn a normal profit,but not an economic profit.

Understand partnership formation and the impact of new partners on existing capital balances.

Apply the bonus and goodwill methods in adjusting partnership capital accounts.

Calculate the new capital balances after the addition of a new partner or withdrawal of an existing partner.

Understand the allocation of profits and losses in partnerships, including special allocations for salaries, interest, and service hours.