In Monopolistic Competition,a Firm's Demand Curve Is Tangent to the ATC

question 106

Multiple Choice

In monopolistic competition,a firm's demand curve is tangent to the ATC curve in the long run because

• A)Barriers to entry are high.
• B)Entry eliminates economic profit,and exit eliminates losses.
• C)Advertising is ineffective in differentiating the product.
• D)Producers are price takers.

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Definitions:

Oxygen

A chemical element (O) with atomic number 8, essential for respiration in most living organisms and a key component of water and most organic compounds.

CCC Bond Angle

Refers to the angle between the carbon atoms within a molecule, particularly relevant in organic compounds.

Hybrid Atomic Orbitals

Orbitals that form from the combination of standard atomic orbitals, explaining the shape and bonding in molecules.

C-C

Refers to the covalent bond between two carbon atoms in organic chemistry.