In long-run monopolistic competition,
a. economic profit is zero
b. P = MC = ATC
c. P = ATC at the minimum point on the ATC
d. normal profit is zero
e. the demand curve is tangent to the MC curve
A
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The potential problem with competitive pricing regulation of a natural monopoly is that ________.
A. P < MR B. P < ATC C. P < AVC D. P < MC
In the figure above, with international trade U.S. consumers buy ________ million T-shirts per year at ________ per T-shirt
A) 60; $5 B) 40; $8 C) 20; $5 D) 40; $5 E) 60; $11
The cost-output elasticity is used to measure
A) input substitution flexibility. B) the slope of the firm's expansion path. C) the slope of long-run average cost. D) the slope of long-run marginal cost. E) economies of scale.
The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
a. The "invisible hand" b. The guiding function of prices c. "Dollar votes" d. Capital accumulation