In Long-Run Equilibrium, Output Is Expanded to the Minimum Long-Run

question 18

Multiple Choice

In long-run equilibrium, output is expanded to the minimum long-run average total cost by:

• A) perfectly competitive firms but not by monopolistically competitive firms.
• B) monopolistically competitive firms but not by perfectly competitive firms.
• C) both monopolistically competitive firms and perfectly competitive firms.
• D) neither perfectly competitive firms nor monopolistically competitive firms.

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Definitions:

John L. O'Sullivan

A 19th-century American journalist who coined the term "Manifest Destiny," embodying the belief that the United States was destined to expand across the North American continent.

Divine Mission

A belief or perception that one has been chosen or called by a higher power to carry out a significant purpose or task.

Manifest Destiny

The 19th-century doctrine or belief that the expansion of the United States throughout the American continents was both justified and inevitable.