A Monopolistic Competitor Is in Long-Run Equilibrium When

question 54

Multiple Choice

A monopolistic competitor is in long-run equilibrium when

• A) it is making zero profits and price equals marginal cost.
• B) its average total cost curve is tangent to the demand curve at the profit-maximizing rate of output.
• C) price is greater than marginal cost.
• D) it is making positive profits or zero profits and price is greater than marginal cost.

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Definitions:

Analytical Skills

The ability to analyze information, break it down into smaller parts, identify patterns, and solve problems logically.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization.

Same Values

The shared beliefs or ethical standards that guide a group of individuals or an organization's behavior and decision-making processes.

Human Capital Inimitability

The degree to which the skills and talents of employees can be emulated by other organizations.