In the Long Run, Firms in Both Monopolistically Competitive Markets

question 155

Multiple Choice

In the long run, firms in both monopolistically competitive markets and perfectly competitive markets earn zero economic profits, but unlike perfectly competitive firms in the long run, monopolistically competitive firms

• A)charge a price that is greater than average revenue.
• B)charge a price that is equal to marginal cost.
• C)do not produce at minimum average total cost.
• D)charge a price that is equal to average total cost.

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Definitions:

Informal Communication

This is the unofficial, casual form of communication that occurs within an organization, often referred to as the grapevine.

Federal Labor Laws

Laws established by the federal government to regulate labor practices, protect workers' rights, and manage relations between unions, employees, and employers.

Stock Options

A form of employee benefit that gives an employee the right, but not the obligation, to purchase company stock at a set price within a specific time period.

Hourly Employees

Workers who are paid for the number of hours they work, rather than receiving a fixed salary.