When a Profit-Maximizing Firm in a Monopolistically Competitive Market Is

question 530

Multiple Choice

When a profit-maximizing firm in a monopolistically competitive market is in long-run equilibrium,

• A)the demand curve will be perfectly elastic.
• B)price exceeds marginal cost.
• C)marginal cost must be falling.
• D)marginal revenue exceeds marginal cost.

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Definitions:

Stairs

A set of steps or flights of steps for passing from one level to another, often inside or outside buildings.

Steep

Descriptive of an object or a surface having a sharp inclination or angle.

Perceives

The process of becoming aware of something through the senses.

Softball

A team sport similar to baseball but played with a larger ball on a smaller field and notably includes underhand pitching.