The Figure Given Below Shows the Revenue and Cost Curves

question 97

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-Which of the following is true of the model of monopolistic competition?

• A)Barriers to entry enable firms to enjoy positive profits in the long run.
• B)The number of firms declines over time as a result of economies of scale.
• C)The monopolistically competitive firms enjoy a greater market power than a monopolist.
• D)Firms tend to locate near each other in order to minimize total travel costs for consumers.
• E)The firms end up charging same prices for their individual products.

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Definitions:

Social Constructionism

The assertion that individuals construct their own reality based on societal expectations, conditioning, and self-socialization.

Societal Expectations

The norms and standards that a society establishes as acceptable or normal behavior for its members.

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A field of psychology that examines behavioral processes in terms of their adaptive value for members of a species over the course of many generations.

Gender-Role Socialization

The process by which individuals learn the cultural norms and expectations associated with their designated gender through social interactions and media.