What of the Following Is Completely True in Long Run $P = M C$

question 39

Multiple Choice

What of the following is completely true in long run, monopolistically competitive equilibrium?

• A) the slope of the demand and average cost curves are the same, \(P = M C\), and \(M C = M R\).
• B) the slope of the demand and average cost curves are negative, \(P > M C\), and \(M C > M R\)
• C) the slope of the demand and average cost curves are positive, \(P > M C\), and \(M C = M R\)
• D) the slope of the demand and average cost curves are the same, \(P > M C\), and \(M C = M R\).

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Definitions:

Express Warranty

A promise or guarantee made by a seller about the quality, function, or performance of a product, explicitly stated in the contract or sales agreement.

Fitness For Purpose

A condition ensuring that a product or service meets the specific criteria or intended use defined by the buyer or contract.

Market Share Theory

A concept in business and economics referring to the percentage of an industry or market's total sales that is earned by a particular company over a specified time period.

Liability

Liability refers to the state of being legally responsible for something, particularly in terms of debts or legal obligations.