A Monopolistically Competitive Firm in the Long Run Will

question 139

Multiple Choice

A monopolistically competitive firm in the long run will

• A)have a demand curve tangent to its AC.
• B)have a demand curve below its AC.
• C)have a demand curve above its AC.
• D)operate where excessive profit can be achieved.

---

Definitions:

Salary Expense

An expense account that records the total amount of salary payments made to employees over a period of time.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company.

Closing Entries

Entries recorded at the close of an accounting period to move balances from temporary to permanent accounts.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements and ensure the ledger accounts are balanced.