In the Long Run, Tangency Equilibrium Occurs When a Monopolistically

question 76

Multiple Choice

In the long run, tangency equilibrium occurs when a monopolistically competitive firm's average revenue curve is tangent to:

• A) its average cost curve.
• B) its marginal revenue curve.
• C) its marginal cost curve.
• D) its demand curve.

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Definitions:

Fixed Cost

Expenses that do not change with varying levels of production.

Negative Reinforcement

A behavioral modification technique where a response increases because a negative condition is removed or avoided.

Tardiness

The act of being late or delayed beyond the scheduled or expected time.

Intermittent Reinforcement

The giving of rewards for behaviour only periodically.