In Long-Run Equilibrium in Monopolistic Competition,price Is

question 40

Multiple Choice

In long-run equilibrium in monopolistic competition,price is:

• A)greater than average total cost.
• B)equal to average total cost at an output below where average total cost is minimized.
• C)equal to average total cost at its minimum.
• D)equal to average total cost at an output above where average total cost is minimized.

---

Definitions:

Business Combination

An occurrence or action where a buyer obtains dominance over one or several companies.

Entry Price

Refers to the initial cost at which an asset, security, or investment is purchased, marking the basis for future financial analysis.

Equity Instrument

A financial instrument indicating ownership in an entity, such as common stock or preferred shares, that represents a claim on the entity's residual assets after liabilities have been deducted.

Risk Management Strategy

A process of identifying, assessing, and controlling threats to an organization's capital and earnings.