In the Long Run, a Monopolistically Competitive Firm Produces with Excess

question 86

Multiple Choice

In the long run, a monopolistically competitive firm produces with excess capacity because the

• A)firm is producing too much output to maximize profit.
• B)firm does not produce at the point at which marginal cost is minimized.
• C)long-run output level occurs at the point at which average total cost is falling.
• D)firm could produce more and reduce average fixed cost.
• E)firm fails to minimize average fixed costs.