The Figure Given Below Shows the Cost and Revenue Curves

question 28

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-In long-run equilibrium, the monopolistically competitive firm:

• A)will break even.
• B)will cease to advertise.
• C)will earn a positive economic profit.
• D)will face a perfectly elastic demand curve.
• E)will no longer need to engage in non-price competition.

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Definitions:

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Unobservable Phenomena

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The act of forming theories or conjectures without firm evidence, often involving the anticipation of market trends in various contexts.

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