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

question 67

Multiple Choice

Which of the following is true in long-run equilibrium for both a competitive market and monopolistic competition?

• A) Accounting profit is zero.
• B) Price equals marginal revenue.
• C) Long-run average cost is minimized.
• D) Economic profit is zero.
• E) Productive efficiency is achieved.

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Definitions:

Discretionary Increase

A decision by policymakers to increase government spending or reduce taxes beyond automatic stabilizers, aiming to influence the economy's direction.

Aggregate Demand Curve

A curve depicting the total demand for all goods and services in an economy at different price levels, assuming other factors remain constant.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Oil Embargoes

A policy tool that involves restricting the sale of oil to certain countries as a measure of control or punishment.