In the Long Run,the Representative Firm in Monopolistic Competition Tends

question 64

Multiple Choice

In the long run,the representative firm in monopolistic competition tends to have:

• A) excess capacity.
• B) economic profits.
• C) limited product differentiation.
• D) a perfectly elastic demand curve.

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Definitions:

Parabola

A symmetrical, open curve that represents the graph of a quadratic function, defined as the set of all points equidistant from a point called the focus and a fixed line called the directrix.

Focus

A specific point used in the definition of conic sections, such as ellipses and hyperbolas, that helps determine their shape.

Vertex

A point where two or more curves, edges, or lines meet; in the context of geometry, it is the corner point of a polygon or polyhedron.

Parabola

A symmetric, U-shaped geometric plane curve that can represent the trajectory of objects under the influence of gravity or the graph of a quadratic function.