In long-run equilibrium in a monopolistically competitive industry, a firm will
A. have a perfectly elastic demand curve.
B. produce at a point to the left of the minimum point on its average total cost curve.
C. always earn an economic profit.
D. produce an output rate at which P = MC.
Answer: B
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In the 1800s, early agricultural activity in the U.S. used the technology of the time which was based on
(a) handwork and animal power. (b) waterpower and the steam engine. (c) the internal combustion engine and electric motor. (d) large-scale enterprises using water driven machinery.
Scenario 4.5 indicates that grilled cheese sandwiches and hamburgers are:
A) substitutes. B) complements. C) independent goods. D) none of the above
Which is assumed to be most limited in scope under a market system?
A. Freedom of choice. B. Government. C. Competition. D. Freedom of enterprise.
The cost of waiting two months for health care to address a debilitating problem in Canada is most accurately described as
A) an explicit cost. B) an accounting cost. C) no real cost. D) an opportunity cost.