Which of the Following Is Correct

question 206

Multiple Choice

Which of the following is correct?

• A) A firm in monopolistic competition does not have excess capacity in the long run.
• B) A firm in perfect competition operates at maximum average total cost in the long run.
• C) In the long run, a firm in monopolistic competition maximizes its profit at a point where price is equal to average total cost but the average total cost is not minimized.
• D) In the long run, a firm in monopolistic competition makes zero economic profit and its price is equal to the minimum average total cost.
• E) In the long run, a firm in monopolistic competition can make an economic profit because of product differentiation.

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Definitions:

Emotional Behavior

Actions driven by one's feelings rather than rational thought.

Conflict Process

The progression of a conflict from its inception through its development, and potentially to its resolution.

Maturity

The state or quality of being fully grown or developed, often characterized by emotional stability and the ability to handle situations with wisdom.

Fractionation

The process of breaking down a mixture into its component parts or phases, often used in chemistry or environmental science.