Which of the Following Is Not a Characteristic of a Monopolistically

question 139

Multiple Choice

Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium?

• A)Marginal revenue is equal to marginal cost.
• B)Price is equal to average revenue.
• C)The firm has excess capacity.
• D)Price is equal to marginal cost.

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Definitions:

Edgeworth Box

A model used in economics to show how different allocations of goods or two goods can affect two individuals' utility levels.

Pareto Optimal Allocations

A situation where no reallocation can make someone better off without making someone else worse off, named after economist Vilfredo Pareto.

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services. It quantifies the satisfaction or happiness derived from consuming these goods and services.

Trade

The action of buying, selling, or exchanging goods and services between people or entities.