Which of the following statements regarding monopolistic competition is not correct?
a. In the long-run equilibrium, price equals average total cost.
b. In the long-run equilibrium, firms earn zero economic profit.
c. In the long-run equilibrium, firms charge a price above marginal cost.
d. In the long-run equilibrium, firms produce a quantity in excess of their efficient scale.
d
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If a banker lacks enough information to determine exactly which applicants for a loan are good risks and which are bad risks, then he faces a(n) __________ problem
A) moral hazard B) adverse selection C) market failure D) disintermediation
An increase in the prison population would tend to cause, other things the same, a decrease in ________
A) federal disabilities benefits B) the use of temporary workers C) the college premium D) the natural rate of unemployment