When a Monopolistically Competitive Firm Is in Long-Run Equilibrium

question 263

Multiple Choice

When a monopolistically competitive firm is in long-run equilibrium,

• A)P = MC = ATC.
• B)MR = MC and minimum ATC > P.
• C)MR > MC and P = minimum ATC.
• D)MR = MC and P> minimum ATC.

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Definitions:

Diminishing Marginal Returns

A principle stating that as one input variable is increased, there is a point at which the marginal per unit output starts to decrease, holding all other inputs constant.

Connecting Points

Locations or nodes within a network where different routes or lines come together, facilitating movement or communication.