Use the Following to Answer Questions

question 81

Multiple Choice

Use the following to answer questions :
Figure: Profit Maximization in Monopolistic Competition
-(Figure: Profit Maximization in Monopolistic Competition) Use Figure: Profit Maximization in Monopolistic Competition.In panel (b) of the figure,the long-run equilibrium will result in:

• A) no economic profits.
• B) no accounting profits.
• C) a tangency of the ATC curve with the MR curve.
• D) no economic profits and a tangency of the ATC curve with the MR curve.

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Definitions:

Parol Evidence Rule

A common law rule that states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.

Parol

Relating to or given by word of mouth; not in writing or formalized in documents.

Parol Evidence Rule

A rule in contract law that prevents parties from presenting evidence of prior or contemporaneous agreements that would contradict the written terms of the contract.

Oral Contracts

Agreements made through spoken communication that are binding, albeit harder to prove than written contracts.