Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a
perfectly competitive market in that in both markets, firms
A) produce at the minimum point of their average total cost curves.
B) produce where price equals marginal revenue.
C) break even.
D) produce where price equals marginal cost.
C
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Growers expect that the price of a bushel of wheat will increase in one month. This belief results in
A) an increase in current supply of wheat. B) a decrease in current supply of wheat. C) a decrease in future supply of wheat. D) no change in current or future supply of wheat.
Output per person rises when
a. the population increases faster than real GDP b. real GDP rises faster than the number of employed workers c. real GDP increases at the same rate as the population d. real GDP rises slower than the population e. real GDP rises faster than the population