Asked by Rhonda Golden on Jul 02, 2024
When a monopolistically competitive firm is in long-run equilibrium:
A) production takes place where ATC is minimized.
B) marginal revenue equals marginal cost and price equals average total cost.
C) normal profit is zero and price equals marginal cost.
D) economic profit is zero and price equals marginal cost.
Long-Run Equilibrium
A state in economics where all factors of production are variable, leading to a situation where all firms in a competitive market make zero economic profit.
Marginal Revenue
The additional income received from selling one more unit of a product or service.
Marginal Cost
The extra expense associated with manufacturing an additional unit of a product or service.
- Investigate the situations where firms in a monopolistically competitive market experience economic gains or losses in both the short-term and long-term.
- Comprehend the condition of long-run equilibrium for firms operating under monopolistic competition, specifically in relation to profitability and economic efficiency.
Learning Objectives
- Investigate the situations where firms in a monopolistically competitive market experience economic gains or losses in both the short-term and long-term.
- Comprehend the condition of long-run equilibrium for firms operating under monopolistic competition, specifically in relation to profitability and economic efficiency.
Related questions
In the Long Run,a Profit-Maximizing Monopolistically Competitive Firm Sets It ...
Long-Run Equilibrium for a Monopolistically Competitive Firm Where Economic Profits ...
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 ...