Suppose the Point of Tangency That Characterizes Long-Run Equilibrium for a Monopolistically

question 2

Multiple Choice

Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q₁ units of output.This level of output,Q₁,

• A) exceeds the level of output at which marginal revenue equals marginal cost.
• B) exceeds the level of output at which marginal cost equals average total cost.
• C) falls short of the level of output at which price equals marginal cost.
• D) exceeds the firm's efficient scale of output.

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