In long-run equilibrium, output is expanded to the minimum long-run average total cost by:
A. perfectly competitive firms but not by monopolistically competitive firms.
B. monopolistically competitive firms but not by perfectly competitive firms.
C. both monopolistically competitive firms and perfectly competitive firms.
D. neither perfectly competitive firms nor monopolistically competitive firms.
Answer: A
You might also like to view...
A system of allocating scarce goods and services using some criteria other than price:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium
If a government policy change harms a monopolist, the government could
A) tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B) increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C) do nothing, because the change is a Pareto improvement. D) It is not possible to mitigate the harm to a monopolist.