The Following Graph Shows the Costs and Revenues of a Typical

question 127

Multiple Choice

The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry.

-What is true about the long-run equilibrium price of a monopolistically competitive firm?

• A)It will equal average cost and exceed marginal cost.
• B)It will equal both average cost and marginal cost.
• C)It will equal marginal cost and exceed average cost.
• D)It will exceed both average cost and marginal cost.
• E)It will equal both marginal cost and marginal revenue.

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Definitions:

Diameters

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Weekly Salaries

The amount of money or compensation given to an employee for one week of work.

Teaching Experience

The accumulated amount of time and expertise gained by an individual in the field of education, through the act of instructing or training learners.

Weights

Objects, often made of metal, used during exercise to increase strength or resistance training.