In the Long Run,which Two Curves Are Tangent for a Firm

question 13

Multiple Choice

In the long run,which two curves are tangent for a firm in monopolistic competition?

• A) marginal cost and marginal revenue
• B) marginal cost and demand
• C) average total cost and demand
• D) average total cost and marginal revenue

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Definitions:

Economic Integration

The process whereby countries reduce trade and investment barriers among themselves, aiming to increase economic cooperation and interdependence.

Internal Tariffs

Taxes imposed by a government on goods and services traded within the same country.

Opportunity Cost

The value of the best alternative forgone in making any decision, a concept central in economics for understanding resource allocation.

WTO

The World Trade Organization (WTO) is an international organization that regulates international trade between nations.