Which of the Following Is TRUE Regarding the Long Run

question 186

Multiple Choice

Which of the following is TRUE regarding the long run for a firm in monopolistic competition?

• A) The firm's price equals its marginal cost.
• B) The firm's economic profit equals zero.
• C) The firm's average total cost is minimized.
• D) The firm's marginal cost equals its average total cost.

---

Definitions:

Market Value

The estimated price at which a good or service would trade in a competitive marketplace.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Officer

An individual holding a position of authority or command, especially within a governmental, military, or corporate structure, responsible for enforcing laws or policies.

Shareholders

Investors in a corporation, who own the corporation.