Which of the Following Is Uncharacteristic of Monopolistic Competition in the Long

question 153

Multiple Choice

Which of the following is uncharacteristic of monopolistic competition in the long run?

• A)firms selling heterogeneous products
• B)zero economic profits
• C)price in excess of marginal revenue
• D)equilibrium on the increasing portion of the average total cost curve
• E)excess capacity

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Definitions:

Investment Spending

Investment spending refers to expenditures made by businesses or individuals on capital goods intended to be used for future production.

Present Value

The contemporary value of a future financial amount or series of cash movements, given a pre-specified rate of return.

Interest Rate

The percentage at which interest is charged or paid for the use of money, often expressed annually.

Investment Options

Various financial assets or vehicles in which individuals or entities can invest money with the expectation of achieving a return.