Solved

In the Long Run, If the Demand Curve of a Monopolistically

Question 28

Multiple Choice

In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then


A) the firm would break even.
B) the firm would shut down temporarily.
C) the firm would earn enough revenue to cover its variable costs, but not its fixed costs.
D) the firm would earn an economic profit.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q7: If a monopolistically competitive firm breaks even,

Q33: Figure 13-17<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4192/.jpg" alt="Figure 13-17

Q34: Figure 13-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 13-4

Q48: Figure 13-19<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 13-19

Q84: A monopolistically competitive firm faces a downward-sloping

Q137: A monopolistically competitive firm is producing an

Q175: When a monopolistically competitive firm cuts its

Q176: Figure 13-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 13-4

Q216: Is a monopolistically competitive firm allocatively efficient?<br>A)No,

Q262: When a firm faces a downward-sloping demand