Which of the Following Is True Regarding the Long Run

question 229

Multiple Choice

Which of the following is true regarding the long run for a firm in monopolistic competition?

• A) The firm can make an economic profit because of product differentiation.
• B) Marginal cost equals average total cost.
• C) Output is produced at minimum average total cost.
• D) Price equals average total cost.

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Definitions:

Subdivision

The process of dividing a piece of land into smaller lots, typically for the purpose of development or sale.

Property Value

The monetary worth of a piece of real estate, which can be affected by factors such as location, condition, and market trends.

Swimming Pool

A man-made basin filled with water designed for swimming or leisure activities.

Reliance

Reliance refers to the act of depending or counting on someone or something, often in the context of legal contracts where one party's actions are based on the promises or agreements made by another.