Which of the Following Is NOT a Characteristic of Long-Run

question 119

Multiple Choice

Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?

• A)The firm earns zero economic profit.
• B)Price is equal to average total cost.
• C)Production occurs at minimum average total cost.
• D)Marginal revenue is equal to marginal cost.
• E)Price exceeds marginal revenue.

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Definitions:

Production Increases

A rise in the amount of goods and services produced by a company, often achieved through enhanced efficiency or expanded capacity.

Total Variable Costs

The sum of all costs that vary with the level of production or service delivery, such as materials and labor.

Activity Level

A measure of the amount of work or output produced in a specific period, often used in cost accounting to allocate variable costs.

Qualitative Information

Information that is descriptive and subjective, often relating to opinions, judgments, or non-measurable factors.