Asked by
Amelia Patiño
on Nov 16, 2024
Verified
In a long-run equilibrium,
A) only a perfectly competitive firm operates at its efficient scale.
B) only a monopolistically competitive firm operates at its efficient scale.
C) neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost.
D) both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production.
Long-run Equilibrium
The state in which all inputs are variable, allowing firms to make adjustments and the market to clear.
Efficient Scale
The level of production at which average total costs are minimized.
- Understand the relationship between market structure, product variety, and consumer welfare.
Verified Answer
HM
Learning Objectives
- Understand the relationship between market structure, product variety, and consumer welfare.
Related questions
The Product-Variety Externality Is Associated with the ...
In the Long Run, a Monopolistically Competitive Firm Produces a ...
In a Well-Working Market, the Underlying Heterogeneity of Consumers' Tastes ...
If the Market Price for a Competitive Firm's Output Doubles ...
In Well Functioning Markets, the Degree of Product Variety Reflects ...