In the long run, firms in Monopolistically Competitive markets produce at the minimum of their average total cost curve
A) True
B) False

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20 Apr 2024

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28 Sep 2019

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Related questions

How does the long-run equilibrium for a monopolistically competitive market differ from the long-run equilibrium for a perfectly competitive market? One way in which monopolistically competitive markets and perfectly competitive markets differ is that in long-run equilibrium, monopolistically competitive firms

A. charge a price greater than marginal cost.

B. do not earn zero economic profits.

C. charge a price less than marginal revenue.

D. produce at a minimum of marginal cost.

E. produce where marginal revenue is less than marginal cost.

raspberryfrog987

1.
When a monopoly charges a higher price, fewer of its goods aresold.
A) True
B) False
2.
A firm can price discriminate if it operates in a competitivemarket.
A) True
B) False
3.
Declining average total cost with increased production is one ofthe defining characteristics of a natural monopoly.
A) True
B) False
4.
In a natural monopoly,if the government requires marginal costpricing, it must pay the monopolist a subsidy.
A) True
B) False
5.
A discriminating monopolist will produce a larger output than anon-discriminating monopolist.
A) True
B) False
6.
By selling hardcover books to die-hard fans and paperback books toless enthusiastic readers, the publisher is able to pricediscriminate and raise its profit.
A) True
B) False
7.
For a monopoly, marginal revenue is often greater than the pricethey charge for their good.
A) True
B) False
8.
A monopoly that engages in perfect price discrimination produces asmuch as a firm in perfect competition
A) True
B) False
9.
The monopolist is a price maker
A) True
B) False
10.
A monopolist will always pick a price in the elastic region of thedemand curve
A) True
B) False

burgundyhare679

In the long run for a monopolistically competitive firm:

A) price is equal to the average cost of production.
B) firms earn economic profits.
C) firms earn economic losses.
D) price is equal to the minimum possible average cost of production.