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:

Neurotransmitter

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse, which by diffusing across the synapse or junction causes the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

T-tubule

Tubular extensions of the cell membrane in muscle cells, which play a critical role in the conduction of electrical signals for muscle contraction.

Action Potential

A short-lasting event in which the electrical membrane potential of a cell rapidly rises and falls, allowing nerve cells to communicate.

Contractile Organelle

A cell component that is involved in the contraction and movement processes, such as muscle fibers.