Figure 12.1.2 -Which of the Following Is True in Long-Run Equilibrium for Equilibrium

question 16

Multiple Choice

Figure 12.1.2
-Which of the following is true in long-run equilibrium for a firm in monopolistic competition?

• A) MC = ATC.
• B) MC > ATC.
• C) MC < ATC.
• D) Any of the above may be true.

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Definitions:

Bank Checking Account

A bank account that allows individuals and businesses to deposit money and withdraw funds, which can be accessed using checks, automated teller machines (ATMs), and electronic debits.

Cash Equivalents

Highly liquid investments that are usually reported with cash on the balance sheet.

Petty Cash Receipts

Petty Cash Receipts are documents that record small cash payments made from a petty cash fund, used for minor or incidental expenses.

Petty Cash Account

A small amount of cash on hand used for paying expenses too small to merit writing a check.