When a Monopolistically Competitive Firm Is in Long-Run Equilibrium

question 73

Multiple Choice

When a monopolistically competitive firm is in 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.

---

Definitions:

Binomial Distribution

A probability distribution that summarizes the number of successes in a fixed number of binary experiments.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant rate and independently of the time since the last event.

Hypergeometric Random Variable

A type of discrete random variable that describes the number of successes in a sequence of draws from a finite population without replacement.

With Replacement

A sampling method where each item is replaced back into the population before the next item is selected, allowing for repeated selection.