In the long-run, a firm in monopolistic competition has
A) a price that exceeds its average total cost.
B) a price that exceeds its marginal cost.
C) an average total cost that exceeds its price.
D) a marginal cost that exceeds its price.
B
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Which of the following is TRUE?
A) For an inferior good, when income increases, the demand curve shifts leftward. B) The demand curve for a good shifts leftward when the price of a substitute rises. C) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. D) An increase in population shifts the demand curve for most goods leftward.
The total quantity of an economy's final goods and services demanded at different inflation rates is
A) the aggregate supply curve. B) the aggregate demand curve. C) the Phillips curve. D) the aggregate expenditure function.
When a monopolist chooses the level of output where marginal cost equals marginal revenue:
A. price is equal to average total costs. B. price is set at marginal revenue. C. profits are maximized. D. total revenue is maximized.
_________ believe that people make well-reasoned and self-interested decisions based upon available information.
Fill in the blank(s) with the appropriate word(s).