When a Monopolistically Competitive Firm Is at Long-Run Equilibrium, _____

question 77

Multiple Choice

When a monopolistically competitive firm is at long-run equilibrium, _____.

• A)the demand curve will be perfectly elastic
• B)marginal cost must be falling
• C)price exceeds marginal cost
• D)marginal revenue exceeds marginal cost
• E)price exceeds average total cost

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Definitions:

Value of Each Share

The worth of a single share of stock in a company, determined by the market or through valuation techniques.

Residual Dividend Policy

A strategy where dividends are paid out from the residual or leftover equity after all necessary operating expenses and working capital needs are met.

Investment Needs

The financial goals or objectives that require the allocation of capital in securities or assets.

Dividends

Regular payments made by a corporation to its shareholders out of its profits or reserves.