When a monopolistically competitive firm is in long-run equilibrium:
A. P = MC = ATC.
B. MR = MC and minimum ATC > P.
C. MR > MC and P = minimum ATC.
D. MR = MC and P > minimum ATC.
Answer: D
You might also like to view...
Emotions like guilt and sympathy:
A. reduce the likelihood that a transaction will maximize total economic surplus. B. can solve commitment problems, but generally reduce players' payoffs. C. can solve commitment problems. D. are irrelevant to economic decision-making.
Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of
A) increasing marginal returns. B) diminishing marginal returns. C) economies of scale. D) diseconomies of scale.
MNCs can often decrease their tax liability through
(a) use of more capital-intensive techniques. (b) use of transfer pricing. (c) use of more foreign input sources. (d) bargaining with the host country. (e) none of the above.
The tendency of many different economic variables to have regular and predictable patterns over the business cycle is called
A) persistence. B) comovement. C) periodicity. D) recurrence.