Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium?
A) Marginal revenue is equal to marginal cost.
B) Price is equal to average revenue.
C) The firm has excess capacity.
D) Price is equal to marginal cost.
Correct Answer:
Verified
Q195: Compared to a perfectly competitive firm, the
Q196: In the long run, firms in both
Q197: Consumers benefit from monopolistic competition by
A)being able
Q198: Figure 13-17 Q199: In contrast with perfect competition, excess capacity Q201: Does the fact that monopolistically competitive firms Q202: Economists have long debated whether there is Q203: If a monopolistically competitive firm has excess Q204: One way by which firms differentiate their Q205: Monopolistically competitive firms achieve allocative efficiency but
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents