In the Short Run,a Monopolistically Competitive Firm

question 84

Multiple Choice

In the short run,a monopolistically competitive firm

• A)May make economic profits,but it fails to make economic profits in the long run because of the entry of new firms.
• B)May make profits just as it does in the long run because firms can enter easily.
• C)Produces at a rate at which long-run average cost equals price,but not at which long-run marginal cost equals marginal revenue.
• D)Makes profits just as it does in the long run because entry is blocked.

---

Definitions:

Value

The importance, worth, or usefulness of something, often influenced by social norms and individual perceptions.

Less Valuable

Considered to have lower worth or importance in comparison to something else.

George Homans

An American sociologist known for his work in developing social exchange theory, which posits that the exchange of goods, services, and social values plays a key role in the formation of social relationships.

Success-Stimulus

The principle that success in a certain activity or field encourages continued action and effort in that or similar activities.