Which of the Following Is True of the Long-Run Equilibrium

question 142

Multiple Choice

Which of the following is true of the long-run equilibrium price in a monopolistically competitive market?

• A) It is equal to the average total cost of production.
• B) It is less than the average total cost of production.
• C) It is higher than the average total cost of production.
• D) It is lower than the marginal cost of production.

---

Definitions:

Special Characteristics

Unique attributes or qualities that distinguish an individual, group, or thing from others.

Inborn Trait

An inherent characteristic or attribute that an individual possesses naturally, without the need for learning or external influence.

Social Identity Theory

A psychological theory that examines how a person’s sense of who they are is based on their group membership(s).

Group Prototype

An ideal or standard model that represents the typical qualities or characteristics of members within a group.