In the Long Run, a Profit-Maximizing, Monopolistically Competitive Firm Operates

question 40

Multiple Choice

In the long run, a profit-maximizing, monopolistically competitive firm operates:

• A)at the minimum point of average total cost.
• B)at the point where demand is unit elastic.
• C)with excess capacity.
• D)at an economically efficient scale.
• E)at the point where price equals marginal revenue.