Under monopolistic competition
A. there is no distinction between the short run and the long run.
B. there are very few firms in the industry.
C. all the firms produce an identical product.
D. each firm breaks even in the long run.
D. each firm breaks even in the long run.
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Crucial assertions in the menu-cost literature are that those costs ________ be large for them to have an effect on firms' pricing, while potential total welfare losses ________ menu costs that have been avoided
A) need not, may be several times larger than B) need not, are generally much less than C) must, may be several times larger than D) must, are generally much less than
A profit-maximizing monopolist will produce the level of output at which
a. average revenue is equal to average total cost. b. average revenue is equal to marginal cost. c. marginal revenue is equal to marginal cost. d. total revenue is equal to opportunity cost.