The Table Below Summarizes the Information Possessed by a Firm

question 130

Multiple Choice

The table below summarizes the information possessed by a firm in a monopolistically competitive market. Quantity demanded is in thousands of units.

-Refer to the table above.This market is ________.

• A) in the long-run equilibrium, because the firm earns a maximum profit of zero
• B) in the long-run equilibrium, because the marginal revenue equals the marginal cost at the optimal quantity for the firm
• C) not in the long-run equilibrium, because the firm earns a maximum profit that is negative
• D) not in the long-run equilibrium, because the marginal revenue and the marginal cost are not equal

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Definitions:

At Least 3

A criterion stating that a condition or quantity should be three or more, not less.

Mutually Exclusive

Situations or events that cannot occur at the same time; the occurrence of one event precludes the occurrence of the other.

Collectively Exhaustive

A condition in probability theory where a set of events covers all possible outcomes, ensuring that at least one of the mentioned events must occur.

Event A

A specified occurrence within a set framework, often observed within statistical and probability studies.