In the long run, a firm in monopolistic competition will produce
A) where average total cost is minimized.
B) where price equals average total cost but average total cost is not at its minimum.
C) zero output.
D) any possible amount of output.
E) where price equals marginal cost.
B
Economics
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Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of labor services from market K to economic agents J. What is market K and who are economic agents J?
A) K = product markets; J = firms B) K = factor markets; J = firms C) K = product markets; J = households D) K = factor markets; J = households
Economics
How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?
What will be an ideal response?
Economics