A monopolistic competitor is in long-run equilibrium when
A) economic profits are equal to zero and the average total cost curve is tangent to the demand curve.
B) economic profits are equal to zero and the marginal cost curve is tangent to the demand curve.
C) economic profits are greater than zero and the average total cost curve is tangent to the demand curve.
D) economic profits are greater than zero and the marginal cost curve is tangent to the demand curve.
Answer: A
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The fastest growing money supply since 1970 has been
a. M1 b. M2 c. M3 d. M1 and M3 (approximately the same rate) and not M2 because M2 is part of M3 e. M1, M2, and M3 which, by definition, must grow at the same rate
Which one of the following is not a possible limitation of using the Coase theorem to guide environmental policy?
a. The free rider effect b. Poor communities are likely to bear a high proportion of environmental costs c. Voluntary transactions cannot protect the environment d. Transactions costs are likely to be high when many parties are involved
All other things unchanged, a higher exchange rate
A. reduces net exports and aggregate demand B. reduces net exports and increases aggregate demand C. increases net exports and aggregate demand D. increases net exports and reduces aggregate demand
Which statement is true?
A. A country like Japan would go to the World Bank to borrow currency to stabilize the yen. B. The WTO has a Dispute Settlement Body to handle trade disagreements among member nations. C. GATT was established at the end of the Great Depression. D. The IMF was set up to aid developing countries build infrastructure.