A firm in a monopolistically competitive market makes no economic profit in the long run because
A. long-run marginal cost will be too high to make any economic profit.
B. long-run price will be equal to long-run marginal cost.
C. long-run marginal cost will be equal to long-run marginal revenue.
D. long-run price will be equal to long-run average cost.
Answer: D
You might also like to view...
Which of the following explains why purchasing power parity does not completely explain long-run fluctuations in exchange rates?
A) Most countries do not impose barriers to trade. B) Some goods and services produced in any country are not traded internationally. C) Consumer preferences for goods and services across countries are very similar. D) Most countries have free markets with little, if any, government regulation.
Consumption spending comprises what percentage of total spending?
A) 0.7 percent B) 7 percent C) 70 percent D) 700 percent
The price elasticity of demand is the ratio of the change in quantity demanded to the change in price
a. True b. False Indicate whether the statement is true or false
Price ____ occurs when producers charge different customers different prices for the same good or service
a. maximization b. discrimination c. regulation d. management