A monopolistically competitive firm is like an oligopolistic firm insofar as
A) both face perfectly elastic demand.
B) both can earn an economic profit in the long run.
C) both have MR curves that lie beneath their demand curves.
D) neither is protected by high barriers to entry.
C
Economics
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In long-run equilibrium, a competitive firm produces the level of output at which:
a. marginal cost is at a minimum. b. short-run average total cost and long-run average cost are at a minimum. c. total revenue is at a maximum. d. diseconomies of scale end.
Economics
The demand for the product of a monopolistically competitive firm is highly elastic when
A) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.
Economics