If a Monopolistically Competitive Industry Is in Long- Run Equilibrium

question 55

Multiple Choice

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

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

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Definitions:

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