What of the Following Is Completely True in Long Run

question 47

Multiple Choice

What of the following is completely true in long run, monopolistically competitive equilibrium?

• A) the slope of the demand and average cost curves are the same, P = MC, and MC = MR.
• B) the slope of the demand and average cost curves are negative, P > MC, and MC > MR
• C) the slope of the demand and average cost curves are positive, P > MC, and MC = MR
• D) the slope of the demand and average cost curves are the same, P > MC, and MC = MR.

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Definitions:

Equity of Redemption

Equity of redemption is the legal right of a mortgagor to reclaim their property after having paid off the full amount of the mortgage plus any interest and costs due.

Unregistered Mortgage

A mortgage that has not been formally registered with the relevant legal or governmental registry, potentially affecting its enforceability and priority.

Mortgage

An agreement made between a debtor and a creditor in which the title to property of the debtor is transferred to the creditor as security for payment of the debt.

Secured

Protected by collateral or a guarantee, often referring to loans or obligations.