A monopolistic competitor in long-run equilibrium is like a perfect competitor in that A. zero economic...
A monopolistic competitor in long-run equilibrium is like a perfect competitor in that
A.
zero economic profits are made.
B.
price equals marginal cost.
C.
both produce at the minimum points of their average total cost curves.
D.
price is greater than marginal cost.
Homework Answers
Ans: (A) Zero Economic profits are made. This point is similar in both markets in the long run. This is because when firms are earning profits, new firm enters and drives up the supply of good and profit level drops. So, in the long run, they make zero economic profits.
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A monopolistic competitor in long-run equilibrium is like a
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please explain answers. unsure on #17 & #20 16 of 25 The first unit of an...
please explain answers. unsure on #17 &
#20
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