In the Long Run,a Firm in Monopolistic Competition ________ a Markup

question 139

Multiple Choice

In the long run,a firm in monopolistic competition ________ a markup of price over marginal cost,and a firm in perfect competition ________ a markup of price over marginal cost.

• A) has; has
• B) has; does not have
• C) does not have; has
• D) does not have; does not have
• E) might have; might have

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock, reflecting the market's valuation of the company.

Hedging

A financial strategy used to reduce or eliminate the risk of price fluctuations for commodities, currencies, or securities.

Futures Contracts

Standard legal contracts for purchasing or selling a certain commodity or financial instrument at an agreed upon price at a future date.

Financial Risk

The possibility of losing money on an investment or business venture due to factors like market volatility or borrower default.