Long-Run Equilibrium Under Monopolistic Competition Is Similar to That Under

question 10

Multiple Choice

Long-run equilibrium under monopolistic competition is similar to that under perfect competition in that

• A)firms produce at the minimum point of their average cost curves.
• B)price equals marginal cost.
• C)firms earn normal profits.
• D)price equals marginal revenue.

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Definitions:

Merger

The combining of two or more companies into one, with the goal of achieving synergies such as increased efficiency or market share.

Acquisition

The process of acquiring control of another company by purchase or exchange of stock.

Combining Firms

The process of two or more companies joining together to form a single business entity, often to achieve strategic objectives or enhance market share.

Horizontal Merger

The combination of two or more companies that operate in the same industry and are at the same stage in the production process.