The Figure Given Below Shows the Revenue and Cost Curves

question 85

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-One major similarity between perfect competition and monopolistic competition is that:

• A)the firms earn above normal profits in the long run.
• B)the firms are price makers.
• C)the firms produce identical products.
• D)the firms just break even in the long run.
• E)entry of firms is barred in the long run.

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Definitions:

Industry

Refers to a particular form or branch of economic or commercial activity, often associated with the production of goods or services.

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service, limiting competition.

Merger

The process by which two or more companies join together to form a single new company, combining their assets, resources, and operations.

Customer Experience

The internal response that customers have to all aspects of an organization and its offering.