Which of the Following Is True of Monopolistically Competitive Markets

question 70

Multiple Choice

Which of the following is true of monopolistically competitive markets?

• A)The economic profits of firms in a monopolistically competitive market are positive in the long run.
• B)The cost of government regulation is small relative to the social losses from monopolistic competition.
• C)Since the price and output combination in a monopolistically competitive market is efficient,there is no need for government regulation.
• D)It is possible that the value created through product differentiation outweighs the efficiency loss from monopolistic competition.

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Definitions:

Secure Attachment Pattern

A style of attachment in which children use the mother as a kind of home base and are at ease when she is present; when she leaves, they become upset.

Disorganized-Disoriented

A term often used in reference to attachment styles, describing individuals who exhibit inconsistent and erratic behaviors and emotions towards caregivers.

Ambivalent

Having mixed feelings or contradictory ideas about something or someone.

Avoidant

A term usually used to describe a pattern of behavior characterized by a tendency to withdraw from or avoid emotional intimacy or stressful situations.