Long-run equilibrium under monopolistic competition and perfect competition is similar in that
A) price equals marginal revenue.
B) price equals marginal cost.
C) firms produce at the minimum point of their average cost curves.
D) firms break even.
D
You might also like to view...
According to the data on real U.S. GDP,
A. economic growth has been irregular, with some periods of downturns. B. economic growth has been consistent, but with a few downturns. C. economic growth has been extremely rapid, but also includes major collapses. D. economic growth has been slight, but downturns have also been eliminated.
Reserve requirements are the
A) minimum percentages of deposits that banks must hold as reserves. B) minimum amount of an owner's financial resources that must be placed in a depository institution. C) rules covering the types of deposits that banks may offer. D) rules covering the types of assets that banks may purchase.
Monetarists believe that an increase in the money supply will lead to
a. a decrease in investment b. an increase in the interest rate c. a decrease in the price level d. an increase in nominal GDP e. an increase in real GDP
Sky-High Skywriters charges competitive prices for its skywriting services even though it has no competition. This is most likely because
A. It is a natural monopoly. B. It operates in a contestable market. C. It cares more about customers' well-being than its own well-being. D. There are no economies of scale in this industry.