If a Monopolistically Competitive Industry Is in Long-Run Equilibrium,then for Each

question 53

Multiple Choice

If a monopolistically competitive industry is in long-run equilibrium,then for each firm

• A)the demand curve is tangent to its LRAC curve.
• B)the MC curve intersects MR at the minimum level of its LRAC curve.
• C)price equals MC at the minimum level of the firm's LRAC curve.
• D)the demand curve cuts the MC curve at the minimum level of the LRAC curve.
• E)positive profits are being earned.

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Definitions:

Production Budget

A financial plan that estimates the number of units that need to be manufactured to meet sales goals and inventory requirements.

Cash Budget

An estimate of cash inflows and outflows for a business or project over a specific period of time, used for managing liquidity and ensuring financial stability.

Cash Receipts

The total amount of money received by a company during a specific period, including all sources of income.

Direct Labor-Hours

The aggregate amount of time spent by staff members directly participating in the creation process.