In the Long Run,a Firm in Monopolistic Competition Will

question 80

Multiple Choice

In the long run,a firm in monopolistic competition will

• A) produce so that its price equals marginal cost.
• B) operate at the minimum of the long-run average cost.
• C) overutilize its insufficient capacity.
• D) produce so that its price equals average total cost.
• E) be dependent on the other firms in the industry.

---

Definitions:

Partnership Assets

Assets or property owned by a partnership entity, which are used for conducting its business activities.

Limited Liability

A legal principle that protects shareholders from being personally responsible for more than their investment in a corporation.

LLC

A Limited Liability Company (LLC) is a business structure in the United States that protects its owners from personal responsibility for its debts or liabilities.

Dissolution

The process of legally dissolving a corporation or partnership, ending its existence.