In the Long Run, a Monopolistically Competitive Firm Will Find

question 96

Multiple Choice

In the long run, a monopolistically competitive firm will find

• A)its demand curve shifting until price equals average total cost
• B)its cost curve shifting until price equals average total cost
• C)its demand curve shifting until marginal revenue equals marginal cost
• D)its cost curve shifting until marginal revenue equals marginal cost
• E)no changes in its demand or cost curves if it is earning an economic profit

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Definitions:

Inspect Corporate Books

The act of reviewing and examining the official records and accounts of a corporation.

Ownership

The state or fact of having legal possession and control over property, conferring rights such as use and the ability to transfer or sell it.

Corporation

A legal entity recognized by law as a separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, entering into contracts, and owning assets.

Purpose

A purpose is the reason for which something is done or created or for which something exists.