Which of the Following Statements Best Describes the Price, Output

question 79

Multiple Choice

Which of the following statements best describes the price, output and profit conditions of monopolistic competition?

• A) Price will equal marginal cost at the profit-maximising level of output; and profits will be positive in the long run.
• B) Price will always equal average variable cost in the short run and either profits or losses may result in the long run.
• C) Marginal revenue will equal marginal cost in the short run, profit-maximising level of output; and in the long run, economic profit will be zero.
• D) Marginal revenue will equal average total cost in the short run; and long-run economic profits will be zero.

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Definitions:

Seminiferous Tubules

Narrow, coiled tubules within the testes where sperm are produced via the process of spermatogenesis.

Ductus Deferens

A tube that carries sperm from the testicles to the urethra, facilitating the transport of sperm during ejaculation.

Ejaculatory Duct

A duct through which semen is ejaculated, running from the seminal vesicle and merging with the vas deferens.

Ductus Deferens

A tube that carries sperm from the epididymis to the ejaculatory ducts, playing a role in the male reproductive system.