A Monopolistic Competitor Is in Long-Run Equilibrium When

question 257

Multiple Choice

A monopolistic competitor is in long-run equilibrium when

• A) economic profits are equal to zero and the average total cost curve is tangent to the demand curve.
• B) economic profits are equal to zero and the marginal cost curve is tangent to the demand curve.
• C) economic profits are greater than zero and the average total cost curve is tangent to the demand curve.
• D) economic profits are greater than zero and the marginal cost curve is tangent to the demand curve.

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Definitions:

Continuous Process

A production process that operates incessantly over a long period of time, allowing for the constant production of goods or delivery of services.

KPI

Key Performance Indicators, which are measurable values used to evaluate the success of an organization, employee, or process.