Suppose That a Monopolistically Competitive Market Is at the Long-Run

question 25

Multiple Choice

Suppose that a monopolistically competitive market is at the long-run equilibrium.Based on this information which of the following conclusion is NOT true?

• A)P > MC.
• B)Deadweight loss is zero.
• C)P = ATC > minimum of ATC.
• D)Firms' profits are zero.

---

Definitions:

DRG System

A system used in healthcare to classify hospital cases into groups according to diagnosis, treatment, and length of stay, for the purpose of payment and data analysis.

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.

Nonlabor Costs

Expenses related to the operations of a business or project that do not include direct costs of labor, such as materials or overhead.

Complication

An unexpected illness or other condition that develops as a result of a procedure, service, or treatment provided during the patient’s hospital stay.