Long-Run Equilibrium in Perfect Competition and in Monopolistic Competition Are

question 108

Multiple Choice

Long-run equilibrium in perfect competition and in monopolistic competition are similar because in both, firms:

• A)produce at the minimum point of the average total cost curve.
• B)set price equal to marginal cost.
• C)make zero economic profits.
• D)have excess capacity.

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Definitions:

Forecast

A prediction or estimate of future events or trends, often based on current data and analysis.

Number of Forecast Values

The quantity of data points projected or predicted for future periods based on historical trends and analysis.

Smoothing Constant

A parameter used in exponential smoothing methods to apply different weights to past observations, typically ranging between 0 and 1.

Exponential Smoothing Model

A time series forecasting method for univariate data that applies exponentially decreasing weights over past observations.