Multiple Choice
Which of the following statements about a firm in long-run equilibrium is true?
A) P = MC for firms in both monopolistic competition and perfect competition.
B) MR > P for a firm in monopolistic competition, and P = ATC for a firm in perfect competition.
C) P > MC for a firm in monopolistic competition, and P = ATC for a firm in perfect competition.
D) P = MC for a firm in perfect competition, and P < ATC for a firm in monopolistic competition.
E) Both answers A and B are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: When weighing the efficiency of monopolistic competition,
Q8: In monopolistic competition, profit is maximised by
Q9: Product differentiation involves making a product that
Q10: In the long run, a firm in
Q11: In monopolistic competition, each firm supplies a
Q13: In an industry with a large number
Q14: Firms in monopolistic competition compete on i.
Q15: The marginal revenue curve facing a monopolistically
Q16: The efficiency of monopolistic competition<br>A) is as
Q17: Firms in monopolistic competition have demand curves