In the Long Run, the Economic Profits of a Monopolistically

question 170

Multiple Choice

In the long run, the economic profits of a monopolistically competitive firm

• A) will tend to be larger than in the short run.
• B) equal zero.
• C) will be the average short-run profits earned in the last five years.
• D) will be the same as in the short run.

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Definitions:

Pairwise Majority Voting

A voting system where candidates are compared in pairs, with each pair being voted on separately, to determine the most preferred option by majority decision.

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclic (i.e., not transitive), even if the individual preferences within the group are rational and transitive. It highlights the complexity of voting systems and decision making.

Individual Preferences

The personal likes or dislikes of an individual, which influence their decisions and behavior.

Social Preferences

Social Preferences indicate how individuals’ decision-making is influenced by the welfare of others, beyond self-interest.