A monopolistic competitor in long-run equilibrium is like a perfect competitor in that
A. price equals marginal cost.
B. zero economic profits are made.
C. both produce at the minimum points of their average total cost curves.
D. price is greater than marginal cost.
Answer: B
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According to the textbook, Monetary policymaking is most accurately described as:
A. both an art and a science B. superior to other policies, since it is conducted by economists. C. a science due to detailed models used D. an art as human judgments are necessary
Describe the field of economics known as microeconomics
What will be an ideal response?
When the percentage change in quantity demanded is less than the percentage change in price, the demand for the good is ________
A) inelastic B) unit elastic C) perfectly inelastic D) elastic
When the government steps in to help determine prices, it is called
a. price ceilings. b. price floors. c. equilibrium prices. d. price control.