Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?
A) It produces at minimum average cost.
B) It does not produce at minimum average cost, and average cost is increasing.
C) It does not produce at minimum average cost, and average cost is decreasing.
D) Either B or C could be true.
C
You might also like to view...
The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the
labor force participation rate would change. What will be an ideal response?
If government spending that gives rise to a budget deficit is for public investment projects such as highways, this spending can increase the economy's future production capacity.
Answer the following statement true (T) or false (F)