Consider a Monopolistically Competitive Industry Which Is in Long-Run Equilibrium

question 136

Multiple Choice

Consider a monopolistically competitive industry which is in long-run equilibrium.Which of the following is true?

• A)All firms charge a price equal to average total cost.
• B)All firms charge a price equal to marginal cost.
• C)All firms make an economic profit.
• D)The demand,average total cost,and marginal cost curves all intersect at the same point.
• E)Firms have an incentive to enter the industry.

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