Figure: Profit Maximization in Monopolistic Competition (Figure: Profit Maximization in Monopolistic Competition) In panel B of the figure Profit Maximization in Monopolistic Competition, the long-run equilibrium will result in:
A)economic profits = 0.
B)accounting profits = 0.
C)a tangency of the ATC curve with the MR curve.
D)economic profits = 0 and a tangency of the ATC curve with the MR curve.

Question

Figure: Profit Maximization in Monopolistic Competition   (Figure: Profit Maximization in Monopolistic Competition) In panel B of the figure Profit Maximization in Monopolistic Competition, the long-run equilibrium will result in:
A)economic profits = 0. 
B)accounting profits = 0. 
C)a tangency of the ATC curve with the MR curve. 
D)economic profits = 0 and a tangency of the ATC curve with the MR curve.

Quizplus · Accepted Answer

The Answer of Figure: Profit Maximization in Monopolistic Competition   (Figure: Profit Maximization in Monopolistic Competition) In panel B of the figure Profit Maximization in Monopolistic Competition, the long-run equilibrium will result in:
A)economic profits = 0. 
B)accounting profits = 0. 
C)a tangency of the ATC curve with the MR curve. 
D)economic profits = 0 and a tangency of the ATC curve with the MR curve.