Asked by
Christella Audrey
on Nov 05, 2024
Verified
Average variable cost is minimized in long-run equilibrium for a monopolistically competitive firm.
Average Variable Cost
Variable expenses, which fluctuate based on production volume, per unit of output.
Long-run Equilibrium
A state in which all aspects of the market, including supply and demand, production capacity, and price levels, are in balance and expected to remain so.
- Recognize the concept of minimum average variable cost and its relevance in the long-run equilibrium.
Verified Answer
MJ
Learning Objectives
- Recognize the concept of minimum average variable cost and its relevance in the long-run equilibrium.