When MR = MC and P = ATC for a Monopolistically

question 110

Multiple Choice

When MR = MC and P = ATC for a monopolistically competitive firm, the firm is in

• A) short‐run disequilibrium.
• B) long‐run disequilibrium.
• C) long‐run equilibrium.
• D) neither short‐run nor long‐run equilibrium.

---

Definitions:

Assets

Economic resources or valuable items that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Required Share

The portion of equity that must be offered to existing shareholders when new shares are issued.

Ownership

The state or fact of possessing something, often referring to the holding of assets or property.