Which of the Following Statements Best Describes the Price,output,and Profit

question 87

Multiple Choice

Which of the following statements best describes the price,output,and profit conditions of monopolistic competition?

• A) Price will equal marginal cost at the profit-maximizing level of output,and profits will be positive in the long run.
• B) Price will always equal average variable cost in the short run,and either profits or losses may result in the long run.
• C) Marginal revenue will equal marginal cost in the short run at a profit-maximizing level of output; in the long run,economic profit will be zero.
• D) Marginal revenue will equal average total cost in the short run,and long-run economic profits are generally positive but could be zero.
• E) Output is equal to the amount for which marginal revenue equals price.

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Definitions:

Big Data

Large volumes of data - both structured and unstructured - that inundate a business on a day-to-day basis.

Data-Processing Techniques

Methods and procedures used for transforming raw data into meaningful information through various manipulations such as coding, sorting, and summarizing.

Sampling Without Replacement

Once an element has been included in the sample, it is removed from the population and cannot be selected a second time.

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.