Which of the Following Statements Is Correct Concerning a Typical

question 124

Multiple Choice

Which of the following statements is correct concerning a typical firm operating under conditions of monopolistic competition in the long run?

• A)Excess capacity is lowered as demand becomes less elastic.
• B)It operates on the rising portion of its average cost curve because of excess capacity.
• C)The greater the product differentiation the lower will be the amount of excess capacity.
• D)None of the choices are correct.

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Definitions:

Salt Crystal

A solid geometric form that results from the orderly repeating pattern of ions in a salt.

Scientific Name

A taxonomic name of an organism, composed of the genus and species, used to universally identify and classify the organism.

Coffea Arabica

A species of coffee plant that is the most widely cultivated for the coffee bean, known for its smooth, rich flavor.

Species Name

The scientific naming of species, typically consisting of a genus name followed by a specific epithet, in the system of binomial nomenclature.