Asked by Nikos Xydakis on Jul 02, 2024
When a monopolistically competitive firm is in long-run equilibrium:
A) P = MC = ATC.
B) MR = MC and minimum ATC > P.
C) MR > MC and P = minimum ATC.
D) MR = MC and P > minimum ATC.
MR
Stands for Marginal Revenue, which is the additional revenue gained from selling one more unit of a product or service.
MC
Short for Marginal Cost, it refers to the increase in total cost that arises from producing one additional unit of a good or service.
Minimum ATC
The point at which the average total cost of production is at its lowest, indicating the most efficient scale of production.
- Acquire knowledge on the subject of long-run equilibrium in markets with monopolistic competition.
Learning Objectives
- Acquire knowledge on the subject of long-run equilibrium in markets with monopolistic competition.
Related questions
In Long-Run Equilibrium,both Purely Competitive and Monopolistically Competitive Firms Will ...
In Long-Run Equilibrium for a Monopolistically Competitive Industry ...
In the Long Run, a Representative Firm in a Monopolistically ...
Firms in an Industry Will Not Earn Long-Run Economic Profits ...
In the Long Run, the Price Charged by the Monopolistically ...