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

question 11

Multiple Choice

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

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

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States responsible for monetary policy.

Interest Rate

The interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Currency

The system of money in general use in a particular country, facilitating the buying and selling of goods and services.

Federal Funds Rate

The interest rate at which banks and other depository institutions lend money to each other, usually on an overnight basis, which is determined by the Federal Reserve in the United States.