In the Long Run, Equilibrium Positions That Arise in Both

question 144

Multiple Choice

In the long run, equilibrium positions that arise in both monopolistically competitive and perfectly competitive markets are

• A) MR = MC and P = MC.
• B) P = ATC and P = MC.
• C) MR = MC and P = ATC.
• D) MR = MC = P.

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Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership to the lessee.

GAAP

GAAP (Generally Accepted Accounting Principles) is a collection of commonly-followed accounting rules and standards for financial reporting.

Capital Lease

A lease agreement in which the lessee gains ownership or a substantial portion of the rights to the asset by the end of the lease term, treated as a purchase in accounting.

Lessee

A person or entity that leases property or equipment from another, known as the lessor, under a lease agreement.