In the Long Run in Monopolistic Competition, a Firm Will

question 86

Multiple Choice

In the long run in monopolistic competition, a firm will not produce the output level that minimizes average cost because

• A)that output level is less than the profit-maximizing one
• B)at that output level, MC is greater than MR
• C)at that output level, P is greater than MR
• D)demand is horizontal
• E)that would leave the firm with excess capacity

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Definitions:

Recreational Drug

A substance taken for pleasure or leisure purposes, rather than for medical reasons; can include legal and illegal drugs.

Widely Used

Something that is extensively accepted and utilized by a large number of people or entities.

Society

Society is a group of individuals involved in persistent social interaction, or a large social group sharing the same spatial or social territory, typically subject to the same political authority and dominant cultural expectations.

Psychological Dependence

A form of dependence marked by a perceived need to continue a behavior or consume a substance to achieve a sense of well-being or relieve negative emotions.