In What Way Does Long-Run Equilibrium Under Monopolistic Competition Differ

question 60

Multiple Choice

In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?

• A)Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency.
• B)The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product.
• C)Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
• D)Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency.

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Definitions:

Cardiac Auscultation

The process of listening to the sounds of the heart using a stethoscope as part of a medical examination.

Intercostal Space

The physical gap between two adjacent ribs, which contains muscles, nerves, and blood vessels.

Diastolic Murmur

A heart sound heard during the diastole phase of the cardiac cycle, potentially indicating heart valve issues or other abnormalities.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, often leading to significant health risks if untreated.