Which of the following statements are true?
A. In the long run the monopolistic competitor is as efficient as the perfect competitor.
B. The demand curve of a monopolistic competitor is more horizontal (flatter) than a monopolist's demand curve.
C. In the long run the monopolistic competitor will definitely make a profit.
D. The demand curve of a monopolistic competitor is identical to its marginal revenue curve.
B. The demand curve of a monopolistic competitor is more horizontal (flatter) than a monopolist's demand curve.
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Which of the following is an example of a product that is nonexcludable and nonrival?
A) a motorcycle B) the court system C) Western lowland gorillas D) a NASCAR event
If a firm faces an average total cost of $100 and sells its product for $115, how much profit does it make when it sells 20 units of the product?
A) $200 B) $115 C) $300 D) $800