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:

Smallest Observation

The smallest observation, also known as the minimum value, is the lowest value in a set of data points.

3rd Quartile

A value below which 75% of the data points in a dataset fall.

Negatively Skewed Distribution

A probability distribution that is characterized by a long tail on the left side, indicating that the bulk of the values are concentrated to the right.

Smallest Observation

The lowest value recorded in a data set.