When a Monopolistically Competitive Firm Is in Long-Run Equilibrium

question 409

Multiple Choice

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

• A)marginal revenue is equal to marginal cost.
• B)average total cost is minimized.
• C)marginal revenue is tangent to average total cost.
• D)All of the above are correct.

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Definitions:

Market Rate Of Interest

The prevailing rate at which borrowers and lenders agree to transact, typically influenced by supply and demand in the financial markets.

Present Value

The today's value of money or cash flows to be received in the future, factored by a particular rate of return.

Oil Reserve

Quantities of crude oil that are held underground or in storage, available for extraction and use.

Market Rate Of Interest

The prevailing rate at which interest is paid by borrowers for loans or earned by investors in the marketplace, determined by supply and demand forces.