In a Long-Run Equilibrium,firms in a Monopolistically Competitive Industry Sell

question 193

Multiple Choice

In a long-run equilibrium,firms in a monopolistically competitive industry sell at a price:

• A)equal to marginal cost.
• B)less than marginal cost.
• C)greater than marginal cost.
• D)less than marginal revenue.

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Definitions:

Call Option

An agreement in finance that grants the purchaser the option, without the mandate, to acquire a security, bond, commodity, or different asset at a pre-determined price during a defined timeframe.

Variance

The average squared deviation between the actual return and the average return.

American Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price on or before a specified date.