A monopolistically competitive firm
a. earns no long-run economic profit and is therefore allocatively efficient
b. earns no long-run economic profit and therefore produces at the minimum point of its ATC curve
c. earns no long-run economic profit and is allocatively efficient even though it is not producing at the minimum point of its ATC curve
d. earns no long-run economic profit, is allocatively inefficient, and does not produce at the minimum point of its ATC curve
e. has a chance of making a long-run economic profit and is therefore allocatively inefficient
D
You might also like to view...
An industry which has no barriers to entry, no product-promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
a. a monopoly market structure. b. perfect competition. c. monopsonistic competition. d. monopolistic competition. e. an oligopoly market structure.
A monopolist who charges a different price for each unit of the commodity sold is called:
a. a perfectly competitive monopolist. b. a natural monopolist. c. a perfectly discriminating monopolist. d. an elastic monopolist.