When a Monopolistically Competitive Firm's Demand Curve Is Tangent to It

question 33

Multiple Choice

When a monopolistically competitive firm's demand curve is tangent to it average cost curve,

• A)the firm earns zero economic profit.
• B)new firms do not enter the market.
• C)the market is in long run equilibrium.
• D)All of these responses are correct.

---

Definitions:

Sharia

The moral code and religious law of Islam, governing both personal conduct and legal matters.

Stoning to Death

An ancient and severe form of capital punishment where a group throws stones at a person until they die. This method is widely condemned as inhumane by international human rights organizations.

Fornication and Adultery

Fornication and Adultery refer to sexual activities outside of marriage, where fornication is between unmarried individuals and adultery involves at least one married person.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, increasing efficiency and effectiveness in that domain.