Which of the Following Is Not a Characteristic of Long-Run

question 66

Multiple Choice

Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?

• A)Selling price equals average total cost.
• B)Production is at minimum average total cost.
• C)Marginal revenue equals marginal cost.
• D)Selling price is greater than marginal cost.

---

Definitions:

Expense Recognition

The accounting principle that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Economic Life

The expected period during which an asset remains useful to a particular entity or project, often affecting its depreciation schedules.

Business Entity

An organization established as a separate legal entity for the purposes of conducting business, such as a corporation, partnership, or sole proprietorship.

Time Periods

Specific intervals or durations used for accounting and reporting purposes, such as fiscal quarters or years.