For a monopolistically competitive firm in long-run equilibrium:
A. price will equal marginal cost.
B. price will equal average total cost.
C. marginal revenue will exceed marginal cost.
D. economic profits will be some positive amount.
Ans: B. price will equal average total cost.
You might also like to view...
The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, enrollment equals
A) 0. B) 10 million. C) 15 million. D) 25 million.
If certification decreases supply and serves as a barrier to entry, it ________ the price and ________ market power of the suppliers already in the market.
A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases
"In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?
A. In neither statement. B. In the second statement. C. In the first statement. D. In both statements.
If the interest rate is 5 percent, the value of $250 today after one year would be
A. $255.00. B. $262.50. C. $275.00. D. $287.50.