Entry of new firms will occur in a monopolistic competitive industry until:
a. marginal cost equals zero.
b. marginal revenue equals zero.
c. marginal revenue equals marginal cost.
d. economic profit equals zero.
e. economic profit is negative.
d
You might also like to view...
In the U.S., the ________ and the ________ prohibit firms from explicitly agreeing to take actions that reduce competition
A) Department of Justice Act; Federal Trade Commission Act B) Sherman Antitrust Act; Federal Trade Commission Act C) Per Se Act; Sherman Antitrust Act D) Pareto Act; Anti-Cartel Act
Assuming labor is the only variable factor of production, production of a good will occur
A. as long as the product's price is greater than the marginal revenue product of labor. B. as long as the marginal revenue product of labor is positive. C. if society values a good more than it costs firms to hire the workers to produce the good. D. if the marginal cost of a unit of output equals the marginal revenue product of labor.