In the Long Run, the Output of a Monopolistically Competitive

question 128

Multiple Choice

In the long run, the output of a monopolistically competitive firm

• A)exceeds that of an otherwise similar perfectly competitive firm
• B)is less than that of an otherwise similar perfectly competitive firm
• C)is at the point at which LRAC is minimized
• D)equals that of an otherwise similar perfectly competitive firm
• E)is less than that of an otherwise similar monopolist

---

Definitions:

Complementary Good

A product or service that is used together with another product or service, increasing demand for one another.

Normal Good

A type of good for which demand increases as the income of the consumer increases.

Popcorn

A type of corn kernel which expands and puffs up when heated, commonly seasoned and served as a snack.

DVDs

Digital Versatile Discs, a type of optical storage media used for storing data, including movies and software.