In the long run in monopolistic competition,
a. economic profits are zero.
b. P = MC.
c. P = minimum ATC.
d. firms have an incentive to leave.
e. the demand curve is tangent to the MC curve.
a
Economics
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When describing goods and services, what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?
What will be an ideal response?
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Economists assume that households try to maximize utility and firms try to:
a. maximize profits. b. maximize scale of operation. c. maximize sales. d. maximize capital usage.
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