For a Monopolistically Competitive Firm in Long Run Equilibrium

question 114

Multiple Choice

For a monopolistically competitive firm in long run equilibrium:

• A) marginal revenue equals marginal cost and price equals average cost.
• B) the economic profits it is earning will soon be competed away by entry.
• C) accounting profits are zero and price equals marginal cost.
• D) marginal revenue equals marginal cost and average total cost is minimized.

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Definitions:

Binding

A legal term indicating that an agreement, contract, or decision is enforceable by law.

Federal District Court

The general trial courts of the United States federal court system where civil and criminal cases are filed.

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The court that has original jurisdiction over cases in a particular state, dealing with disputes involving state laws.

Med-Arb

A hybrid dispute resolution process combining elements of both mediation and arbitration to resolve disputes more efficiently.