Consider a Monopolistically Competitive Industry Which Is in Long- Run

question 20

Multiple Choice

Consider a monopolistically competitive industry which is in long- run equilibrium. Which of the following is true?

• A) All firms charge a price equal to average total cost.
• B) Demand, average total cost and marginal cost all intersect.
• C) All firms charge a price equal to marginal cost.
• D) All firms earn positive economic profit.

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