When a profit-maximizing firm in a monopolistically competitive market is producing the long-run equilibrium quantity,
a. its average revenue will equal its marginal cost.
b. its marginal revenue will exceed its marginal cost.
c. it will be earning positive economic profits.
d. its demand curve will be tangent to its average total cost curve.
d
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One possible reason as to why consumers respond to sales is that by displaying a "high" regular price and a "low" sale price, sales provide consumers with a reference point to interpret the prices being offered
Indicate whether the statement is true or false
Suppose that in our economy: G = 1100, T = 900, S = 140, and NX = -90. How much of our final product is left for domestic firms to purchase for themselves?
A) 110 B) 200 C) 230 D) 50 E) 30
If the government imposes price controls and prevents prices from adjusting naturally to supply and demand, a. it equates the amount buyers are willing and able to buy with the amount sellers are willing and able to supply. b. it adversely affects the allocation of resources
c. it improves both equality and efficiency. d. it improves efficiency.
Which of the following causes the world's production possibilities curve to shift to the right?
a. a decline in the world's population due to AIDS b. a shift from capital goods to consumer goods production c. a civil war in Iraq, a major world producer of oil d. the development of a new technology that improves labor's productivity e. a worldwide recovery from a recession