Which of the Following Is NOT a Characteristic of Long-Run

question 128

Multiple Choice

Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?

• A) the firm makes zero economic profit
• B) price equal to average total cost
• C) production occurs at minimum average total cost
• D) marginal revenue is equal to marginal cost
• E) price exceeds marginal revenue

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Definitions:

Amortized Cost Basis

An accounting method that gradually writes off the initial cost of an asset over a period, which reflects its consumption or use over time.

Credit Loss

Credit Loss is the loss incurred by a lender when a borrower fails to repay a loan, and the recoverable amount is less than the outstanding balance.

Effective Interest Rate

The real cost of borrowing, taking into account the effects of compounding interest.

Debt Security

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, where the borrower is obligated to pay back with interest.