What Is True About Both Perfectly Competitive and Monopolistically Competitive

question 58

Multiple Choice

What is true about both perfectly competitive and monopolistically competitive firms in long-run equilibrium?

• A)They produce at minimum average cost.
• B)They earn economic profits.
• C)They achieve allocative efficiency.
• D)They achieve productive efficiency.
• E)They equate marginal cost and marginal revenue.

---

Definitions:

Inventory Analysis

The examination of inventory to determine the optimal stock levels, turnover rates, and ordering practices.

Mathematical Forecasting

The process of making predictions about future events based on mathematical models and statistical techniques.

Factors of Production

The inputs required for the production process, including land, labor, capital, and entrepreneurship.

Tight Bureaucracy

A highly structured organizational form with strict rules, procedures, and a clear hierarchy of authority.