In the long run,perfect competitors and monopolistic competitors are similar in that they:A) set price where MR

Question

In the long run,perfect competitors and monopolistic competitors are similar in that they:

A) set price where MR < MC.
B) produce an output level at which P = ATC.
C) produce a product that is standardized and hard to differentiate.
D) earn a positive economic profit.

Zybrea Knight · Accepted Answer

Final Answer : B, Explanation :  In the long run, both perfect competitors and monopolistic competitors produce at an output level where price equals average total cost (P = ATC), leading to zero economic profit.

In the long run,perfect competitors and monopolistic competitors are similar in that they:

A) set price where MR < MC.
B) produce an output level at which P = ATC.
C) produce a product that is standardized and hard to differentiate.
D) earn a positive economic profit.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the long run,perfect competitors and monopolistic competitors are similar in that they:A) set price where MR < MC.B) produce an output level at which P = ATC.C) produce a product that is standardized and hard to differentiate.D) earn a positive economic profit.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the long run,perfect competitors and monopolistic competitors are similar in that they:

A) set price where MR < MC.
B) produce an output level at which P = ATC.
C) produce a product that is standardized and hard to differentiate.
D) earn a positive economic profit.