An Important Difference Between the Situation Faced by a Profit-Maximizing

question 629

Multiple Choice

An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run,

• A)price may exceed marginal revenue, but in the long run, price equals marginal revenue.
• B)price may exceed marginal cost, but in the long run, price equals marginal cost.
• C)price may exceed average total cost, but in the long run, price equals average total cost.
• D)there are many firms in the market, but in the long run, there are only a few firms in the market.

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Definitions:

Individual Attributes

Individual attributes are personal qualities, traits, or characteristics that define or distinguish one person from another.

Organizational Support

The extent to which an organization values its employees, helps them when it's needed, and establishes a supportive work environment.

Effort

The expenditure of physical or mental energy toward the achievement of a goal or task.

Effort Performance Reward Relationship

A concept in organizational behavior that stipulates the connection between an individual's effort, their performance, and the rewards they receive.