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.

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Definitions:

Vibrations

Oscillations or rapid motions back and forth or up and down, often referenced in physics, engineering, and environmental contexts.

Rail System

A network of tracks, stations, and supporting infrastructure for trains, providing transportation for passengers and freight.

Pollution Control Technology

Systems, devices, or practices designed to reduce, eliminate, or manage pollutants emanating from human activity to protect the environment.

Chemical Waste

Hazardous substances produced as byproducts of manufacturing processes, laboratory experiments, or other industrial activities, requiring careful disposal to prevent environmental damage.