In a Long-Run Equilibrium

question 440

Multiple Choice

In a long-run equilibrium,

• A)excess capacity applies to monopolistically competitive firms but not to competitive firms.
• B)zero economic profit applies to competitive firms but not to monopolistically competitive firms.
• C)markup over marginal cost applies to both monopolistically competitive and competitive firms.
• D)product variety externalities apply to both perfectly competitive firms and monopolistically competitive firms.

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Definitions:

Standard Form

A way of writing numbers, typically large or small, using powers of ten, or a general way of writing equations in mathematics.

Complex Number

A number that can be expressed in the form a + bi, where a and b are real numbers and i is the imaginary unit.

Multiplicative Inverse

The number that, when multiplied by a given number, results in a product of one. It is also known as the reciprocal.

Complex Number

A value represented as a + bi, where a and b are real numbers, and i is the unit of imaginary numbers.