Which Two Curves Are Tangent to Each Other in a Monopolistically

question 276

Multiple Choice

Which two curves are tangent to each other in a monopolistically competitive market with zero economic profit?

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

---

Definitions:

Independent Demand

A type of demand that is not influenced by the demand for other products but rather by market conditions or customer needs.

Custom Cabinets

Custom-made storage units designed and built to meet the specific dimensions, style, and needs of a homeowner or business.

Green Enterprises

Businesses that operate with a focus on environmental sustainability, reducing carbon footprint, and promoting eco-friendly practices.

Incremental Cash Inflow

The additional cash flow a company receives from undertaking a project or investment.