Long-Run Equilibrium in a Monopolistically Competitive Market Is Similar to Long-Run

question 48

Multiple Choice

Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a
Perfectly competitive market in that in both markets,firms

• A)produce at the minimum point of their average total cost curves.
• B)produce where price equals marginal cost.
• C)break even.
• D)produce where price equals marginal revenue.

---

Definitions:

Prospectus

A description of the firm and the security it is issuing.

Registration Statement

A legal document filed with the relevant regulatory authority that provides essential details about a company's finances, executives, and the securities it intends to issue to the public.

Limit-Sell Order

An order given to a broker to sell a specified quantity of a security at or above a specified price, ensuring the seller does not receive less than a predetermined price.

Program Trade

A set of stock transactions that involves the buying or selling of a large number of stocks simultaneously, often executed by computers to achieve specific investment objectives.