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Naomi Echeverria
on Dec 04, 2024

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Which of the following is true for both perfectly competitive and monopolistically competitive firms in the long run?

A) P = MC.
B) MC = ATC.
C) P > MR.
D) Profit equals zero.

Long Run

A period of time in which all factors of production and costs are variable, allowing companies to adjust to market changes.

Perfectly Competitive

A market structure characterized by infinite buyers and sellers, no barriers to entry, and perfect information, resulting in an efficient market.

Profit Equals Zero

The condition where profit equals zero, also known as the break-even point, is where a business's revenues exactly match its total costs, resulting in neither profit nor loss.

  • Delve into the long-term equilibrium conditions of monopolistic competition, paying particular attention to zero economic profits and inefficiencies.
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Michael-Paul DixonDec 11, 2024
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