Which of the following statements about the monopolistically competitive market, in the long run, is true?
a. The resources are efficiently utilized.
b. The firms make above-normal profit in the long run.
c. The marginal-revenue curve coincides with the demand curve facing the firm.
d. The firms produce the output level that is less than the output corresponding to the minimum of average total cost.
e. The firms operate on the upward-sloping portion of the long run average cost curve.
d
You might also like to view...
A rightward shift of the AD curve in the very steep upper part of the short-run AS curve will:
A. increase real output by more than the price level. B. increase the price level by more than real output. C. reduce real output by more than the price level. D. reduce the price level by more than real output.
The slope of the scatter diagram representing the relationship between consumption and disposable income in the United States is approximately
A. 1.10. B. 0.30. C. 0.50. D. 0.90.