-Given the Marginal Cost and Average Total Cost Curves in Figure

question 68

Multiple Choice

-Given the marginal cost and average total cost curves in Figure 11-6,a monopolistically competitive firm in long-run equilibrium will produce

• A)250 units and charge a price of $6
• B)less than 250 units and charge a price below $6
• C)more than 250 units and charge a price below $6
• D)more than 250 units and charge a price above $6
• E)less than 250 units and charge a price above $6

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Definitions:

Return on Assets

A financial metric that assesses a firm's ability to generate earnings from its assets, determined by dividing its net income by its overall assets.

Earning Per Share

The earnings a company makes per share of its common stock outstanding, signifying how profitable the company is.

Total Equity

The value left in a company after deducting total liabilities from total assets, representing the ownership value in the company.

Profit Margin

A financial metric expressed as a percentage, indicating how much of each dollar in revenue is translated into profit.