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.

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Definitions:

Collective Behavior

Actions and phenomena that emerge suddenly in a social context, distanced from well-established norms or conventions.

Agglomeration

The clustering of businesses, services, or resources in a specific area, often leading to economic benefits.

Conscious Personality

Refers to the aspects of an individual's personality that they are fully aware of, including thoughts, feelings, and behaviors that the individual recognizes as their own.

Mass Society

A concept referring to a society in which industrialization and bureaucratic expansion create a perceived gap between the individual and the collective or governmental institutions.