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

question 18

Multiple Choice

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

• A) The firm makes 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:

Prime Rib Dinner

A meal featuring a prime rib, which is a cut of beef from the primal rib, traditionally roasted and served as a significant dish in Western cuisine.

Two-Part Tariff

A pricing model featuring a base charge along with a fee that varies depending on usage.

Heterogeneous Demands

Describes consumer preferences that vary widely, requiring markets to offer a diverse range of products to meet different needs.

Price Discriminate

The practice of charging different prices to different consumers for the same good or service, based on differing willingness to pay.