Which of the Following Holds Good in the Long Run

question 36

Multiple Choice

Which of the following holds good in the long run under monopolistic competition?

• A)Price = marginal cost
• B)Price = average cost
• C)Price > average cost > marginal cost
• D)Price > average cost = marginal cost
• E)Marginal revenue = price

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Definitions:

Electrical Pressure

Another term for voltage, indicating the potential difference or force that causes current to flow in a circuit.

Volts

The unit of measurement for electric potential or electromotive force, indicative of how much force pushing electric current through a circuit.

Check Valve

A valve that allows fluid to flow through it in only one direction, preventing backflow.

Vacuum Power Brake

A brake booster that uses a vacuum to multiply the force the driver applies to the brake pedal, reducing effort and improving response.