Asked by
Technical ProDucTion
on Nov 26, 2024
Verified
For a monopolistically competitive firm in long-run equilibrium,
A) price will equal marginal cost.
B) price will equal average total cost.
C) marginal revenue will exceed marginal cost.
D) price will equal the minimum average total cost.
Long-Run Equilibrium
A state in which all factors of production and costs are variable, and firms in a competitive market make just enough profit to cover their costs.
Marginal Cost
The increase or decrease in the total cost incurred from producing one additional unit of a good or service.
- Absorb the essential qualities and equilibrium circumstances characteristic of enterprises in a monopolistically competitive environment.
- Understand the concept of excess capacity and its implications for resource allocation in monopolistic competition.
Verified Answer
VB
Learning Objectives
- Absorb the essential qualities and equilibrium circumstances characteristic of enterprises in a monopolistically competitive environment.
- Understand the concept of excess capacity and its implications for resource allocation in monopolistic competition.
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