In the Long Run, If the Demand Curve of a Monopolistically

question 28

Multiple Choice

In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then

• A)the firm would break even.
• B)the firm would shut down temporarily.
• C)the firm would earn enough revenue to cover its variable costs, but not its fixed costs.
• D)the firm would earn an economic profit.

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Definitions:

Football Game

A sport involving two teams competing to score points by advancing a ball into the opposing team's end zone, primarily through running or passing plays.

Halftime

A period of rest in between the two halves of a game where teams may discuss strategies and rest.

Relative Size

A concept in perception that allows an individual to estimate the size of an object in comparison to another within the same visual field.

Distance Cue

refers to visual and auditory signals that help perceive the distance of an object or scene, crucial for depth perception.