In the Long Run, Firms in Both Monopolistically Competitive Markets

question 155

Multiple Choice

In the long run, firms in both monopolistically competitive markets and perfectly competitive markets earn zero economic profits, but unlike perfectly competitive firms in the long run, monopolistically competitive firms

• A)charge a price that is greater than average revenue.
• B)charge a price that is equal to marginal cost.
• C)do not produce at minimum average total cost.
• D)charge a price that is equal to average total cost.

---

Definitions:

Farmers Create

The process by which agricultural professionals cultivate crops and rear livestock, contributing to food production and land management.

Trawler

A fishing vessel designed to drag nets through water to collect fish or seafood.

Environmental Damage

Harm caused to the natural environment, often due to human activities, leading to degradation of ecosystems and loss of biodiversity.

Fishing Line

A fishing line is a cord used in angling, made from materials designed to be strong, durable, and often invisible underwater to catch fish.