In the Long Run, If the Demand Curve of a Monopolistically

question 28

Multiple Choice

In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then

• A)the firm would break even.
• B)the firm would shut down temporarily.
• C)the firm would earn enough revenue to cover its variable costs, but not its fixed costs.
• D)the firm would earn an economic profit.

---

Definitions:

Scanty

Insufficient in quantity; minimal or sparse.

Pyelonephritis

A type of urinary tract infection that progresses from the lower urinary tract to the upper urinary tract, specifically affecting the kidneys, potentially leading to kidney damage.

Protein

A macromolecule made of amino acids, critical for the structure, function, and regulation of the body's tissues and organs.

Glucose

A basic form of sugar that serves as a crucial source of energy for living beings and is found in numerous carbohydrate compounds.