Suppose for some firm that average total cost is minimized at Q1 units of output. For a monopolistically competitive firm in long-run equilibrium, Q1
a. is also the level of output at which marginal cost equals average total cost.
b. exceeds the level of output at which there is a point of tangency between the demand curve and the average total cost curve.
c. exceeds the level of output at which marginal revenue equals marginal cost.
d. All of the above are correct.
d
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Which of the following is not a depository institution?
A) a savings & loan association B) a mutual savings bank C) an investment bank D) a credit union
Which of the following is true about the demand curve facing the dominant firm?
A) It equals market demand minus fringe firms' supply curve. B) It is identical to market demand. C) It equals market demand minus demand facing the fringe firms. D) It is horizontal.
The portion of income which is earned in the form of wages for labor is about
a. 15% b. 35% c. 51% d. 60%
A firm will break even when
A) P = ATC. B) P > ATC. C) P < AVC. D) P = AVC.